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By Jay Heizer, Barry Render

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Example text

First, in freedom of action there is freedom from and freedom to. Freedom from, also called negative freedom, is freedom from external constraint, coercion, intimidation, manipulation, and so on. Freedom to, also called positive freedom, is access to resources, competencies, economic, political, social and cultural processes, and so on. These freedoms of action differ from freedom of will. Freedom of action may mean that one is at the mercy of unconscious desires, drives, impulses, instincts, addiction, and so on.

I return to this point below. I will also show that allocative and productive efficiency often go against each other, in increase of scale and concentration of production that yield productive efficiency at the expense of allocative efficiency. For the model of perfect competition to work, one condition is the absence of economies of scale. This is well known but merits elaboration, given in Chapter 3, to show how ubiquitous scale effects in fact are. In the present chapter, I want to further expand on the idols of economics indicated in Chapter 1.

First I focus on the cognitive side. Here I can be short. From the theory of knowledge that I set out above, the way in which people interpret, think, choose and act depends on what they encountered along the course of their lives, the cultural and institutional environment, and the specific context of action. In sum, while cognition is individual it develops not autonomously but socially. As I noted above, when making a choice and taking action, people take into account the social situation, and how it is framed.

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