Saturday 6 March 2010

The market will select for those who can collaborate

Free markets don't work without teamwork. If you want to sell something it means you give something to someone else, who returns the favour. You help others, and you are helped. If someone does not reciprocate what you are offering, in the end you stop helping them.

A market is about teamwork, we exchange goods so that we are best equipped to meet the challenges that we face. For example if we both need to make a journey in the rain and one of us has two bicycles and the other has two umbrellas, it is to our advantage to swap one for the other so that we both have one of each. This is teamwork because we apply our property to the problem faced by our neighbour. The problems (distance to be covered and rain to be opposed) which are mutually faced are resolved by cooperation.

Teamwork means that we help each other to meet a shared goal, or, more descriptively, to resolve a shared problem. If we both have a lawn to mow then it might make sense to build one lawnmower collectively, which we can both use, than to build one each; ignoring the efficiencies of building two simultaneously as in a factory...

If we (the two neighbours) must harvest our crops it might be easier to work in pairs on the two fields, one after the other, to save time. It might make sense to become skilled in one area, decorating, say, and cleaning windows and exchange the labour between neighbours for a more efficient outcome. This is not different than (from) collaborating on the windows and decorating of both houses, one after the other. So, this division of labour is no different from teamwork and, crucially, the labour can be done by one person in each case. The dynamic changes when the task is more easily accomplished by more than one person acting alone...

Teamwork breaks down when one person has no interest in achieving the stated goal. They will no longer participate. The division of labour facilitates teamwork in achieving the desired outcome.

Teamwork comes into play (to a greater extent) when no one person is able to bring about the desired outcome. It might take many people to run a shop, for example. If we agree to do the work to help run the shop then we are owed a similar quantity of work in return.

Teamwork has utility in a free market because we can, in certain circumstances, achieve more together than individually. There are economies of scale which means that we must often work in a team if we are not to be priced out of the market. Certain tasks require the work of more than one person to accomplish them, it is then that teams emerge because they are efficient and desired by the market. Teamwork has a premium. In a free market, the ability to perform efficient teamwork is a valuable skill. Teamwork is valued by the market in a situation where a task cannot be (well) accomplished alone, by one person. The market values teamwork.

The market selects for and favours Sociable people. Collaboration emerges if markets are left alone. Collaboration is natural and normal because many tasks are best accomplished with (the help of) other people.

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