Cases Quote by Bob Frank
“As the great naturalist Charles Darwin saw clearly, individual and collective interests often coincide, as in the invisible hand narrative. But he also saw that in many other cases, interests at the two levels are squarely in conflict, and that in those cases, individual interests generally trump. That simple observation suggests that market failure is often the result not of insufficient competition (the traditional charge from social critics on the Left), but of the very logic of competition itself.”
About This Quote
Source Book: Market Logic and Human Nature, 2017
Competition can cause market failures because individual self‑interest often overrides collective good.
In simple terms: Competition may harm society.
Key Takeaway
Design institutions that align individual and collective interests.
Themes
economics
competition
collective good
failure
Mood
analytical
thought‑provoking
Type
academic
explanatory
When to use this quote
- regulatory policy
- corporate governance
- community projects
Key Concepts
invisible hand
public goods
externalities
Questions to Reflect On
- What policies can align self‑interest with public good?
- When does competition benefit society?
A Different Perspective
Markets can self‑correct with proper rules.