In section seven, entitled, "From Crusoe to going concern", Commons follows on the limits of coercion with more details. Commons starts by having us consider various types of differences in parties to a bargaining transaction. One type of difference is the relative difference in physical strength. This may result in different economic outcomes. If we imagine physical strength and violence are taken as equal, another difference would be the power of persuasion. Another difference may be the strength of wants or needs between buyer and seller. The final difference, number four, may be due to fraud, misrepresentation or ignorance. To reiterare, physical strength used to effect can be called duress. Differences in economic strength can be termed coercion. Finally, the difference in moral power can be termed persuasion. Commons states that, "Duress is the direct or threatened compulsion of physical force. Coercion is the indirect ...
This blog has been setup to explore the ideas and philosophy of the American institutional economist John R. Commons.