Concept

Ethical and Social Limits of Market Allocation

Beyond technical inefficiencies, the scope of market allocation is also limited by widely held ethical and social norms. Thinkers like Adam Smith recognized that some goods and services should not be subject to market transactions to promote social wellbeing. Contemporary examples of such 'repugnant markets' include the buying and selling of human organs, votes, or essential life-saving medical care, which most people believe should be allocated based on principles other than the ability to pay.

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Updated 2026-05-02

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