Robust Political Economy and the Priority of Markets

This essay offers a 'non-ideal' case for giving institutional priority to markets and private contracting in the basic structure of society. It sets out a 'robust political economy' framework to examine how different political economic regime types cope with frictions generated by the epistemic limitations of decision-makers and problems of incentive incompatibility. Focussing both on efficiency arguments and distributive justice concerns the essay suggests that a constutional structure that prioritises consensual exchange is more likely to sustain a cooperative venture for mutual advantage