satt comments on Closet survey #1 - Less Wrong
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Comments (653)
I see a dilemma here.
If I think of your transaction in isolation, it's free but not a market: it's a bargaining problem.
If I think of your transaction as part of the broader labour market, it's not really free; it's influenced by government regulations & macroeconomic policies, if only through their effects on the general price level, the general wage level, and the supply & demand for labour.
I reckon your transaction is an example of what mtraven's talking about rather than a counterexample!