--- title: "Meaning & Key Takeaway of: According to Friedman, if individuals are…" description: "\"“According to Friedman, if individuals are voluntarily entering into exchanges from which both parties expect to benefit, then the market is free. This..." image: "https://sms4smile.com/quotes/i/aa0/william-t-cavanaugh-44004_capitalism_according-to-friedman-if-individuals-are_2739324.jpg" --- # According to Friedman, if individuals are voluntarily… ![“According to Friedman, if individuals are voluntarily entering into exchanges from which both parties expect to benefit, then the market is free. This is a fairly conventional definition of a free-market economy. It hinges on the insistence that exchanges be voluntary and informed. With regard to…” quote by William T. Cavanaugh](https://sms4smile.com/quotes/i/aa0/william-t-cavanaugh-44004_capitalism_according-to-friedman-if-individuals-are_2739324.jpg) [Download](https://sms4smile.com/quotes/i/aa0/william-t-cavanaugh-44004_capitalism_according-to-friedman-if-individuals-are_2739324.jpg) [Open image](https://sms4smile.com/quotes/i/aa0/william-t-cavanaugh-44004_capitalism_according-to-friedman-if-individuals-are_2739324.jpg) > ““According to Friedman, if individuals are voluntarily entering into exchanges from which both parties expect to benefit, then the market is free. This is a fairly conventional definition of a free-market economy. It hinges on the insistence that exchanges be voluntary and informed. With regard to information, an exchange cannot be free if one party has deceived another, say, by selling the other a house without divulging a severe problem with termites. Barring such deception, however, Friedman is confident that the price system in a free-market economy transmits all the information needed to make exchanges informed.”” [William T. Cavanaugh](https://sms4smile.com/quotes/author/william-t-cavanaugh/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Defines a free market as voluntary, informed exchanges, emphasizing honesty and information flow. **In simple terms:** Free markets need honest, informed trades. Key Takeaway Ensure transparency in transactions. Themes economics ethics information Mood cautious analytical Type theoretical educational When to use this quote - business contracts - real estate deals - online marketplaces Key Concepts voluntary exchange market theory information asymmetry Questions to Reflect On - How can consumers verify information? - What safeguards protect against fraud? A Different Perspective Deception undermines market freedom. ★ ★ ★ ★ ★ No ratings yet [Capitalism](https://sms4smile.com/quotes/about/capitalism/) [Economics](https://sms4smile.com/quotes/about/economics/) [Exchanges Informed](https://sms4smile.com/quotes/about/exchanges-informed-3015489/) [Exchanges Voluntary](https://sms4smile.com/quotes/about/exchanges-voluntary-3015487/) [Free market](https://sms4smile.com/quotes/about/free-market/) [Market Free](https://sms4smile.com/quotes/about/market-free-2573815/) [Voluntary Informed](https://sms4smile.com/quotes/about/voluntary-informed-3015488/) ## Related quotes > [With free market and free man, if you remove one of them, it is not called capitalism in my dictionary.](https://sms4smile.com/quotes/li-lu/with-free-market-and-free-man-if-you-remove-one-of-them-it-is-not/) [Li Lu](https://sms4smile.com/quotes/author/li-lu/) > [There's a difference between a free market and free-for-all market.](https://sms4smile.com/quotes/bob-menendez/there-s-a-difference-between-a-free-market-and-free-for-all-market/) [Bob Menendez](https://sms4smile.com/quotes/author/bob-menendez/) > [This is the marketplace of political ideas. 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