Markets, Repugnance, and Externalities

18 Pages Posted: 18 Jul 2022 Last revised: 19 Jul 2022

Date Written: June 27, 2022

Abstract

This Article considers one aspect of the ongoing debate about the moral limits of markets—namely, the purported harmful effects of market transactions on particular relations, goods, services, or society at large, due to an inappropriate valuation. In other words, the argument is that some markets are “repugnant” because they degrade and corrupt a variety of nonmarket values and relations, not just to the willing parties to the exchange, but to larger segments of society.

This objection contains both a (frequently unacknowledged) empirical component and a moral component. This Article critiques these empirical claims on two grounds. First, market skeptics fail to provide evidence of the negative effects they hypothesize, despite widespread variation over time and across legal regimes. Second, these objections fail to account for the well-documented human tendency to fashion repugnant exchanges in a manner that reinforces—rather than undermines—deeply held values and relationships.

Keywords: Repugnance, markets, corruption, externalities

JEL Classification: K00, K32, K36, K42

Suggested Citation

Krawiec, Kimberly D., Markets, Repugnance, and Externalities (June 27, 2022). Journal of Institutional Economics (forthcoming 2022), Virginia Public Law and Legal Theory Research Paper No. 2022-48, Virginia Law and Economics Research Paper No. 2022-14, Available at SSRN: https://ssrn.com/abstract=4164824

Kimberly D. Krawiec (Contact Author)

University of Virginia School of Law ( email )

580 Massie Road
Charlottesville, VA 22903
United States

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