World Library  
Flag as Inappropriate
Email this Article

Dollar voting

Article Id: WHEBN0001324669
Reproduction Date:

Title: Dollar voting  
Author: World Heritage Encyclopedia
Language: English
Subject: Ethical consumerism, Exit (economics), Consumer sovereignty, Voting theory, Exit, Voice, and Loyalty
Collection: Economics Terminology, Market-Based Policy Instruments, Microeconomics, Voting Theory
Publisher: World Heritage Encyclopedia
Publication
Date:
 

Dollar voting

The term dollar voting is an analogy which purports to through the relative sums of money spent on various goods and services.

Overview

Consumers are said to vote for the products on which they spend their dollars.[1] In Principles of Economics courses, this is used to describe the process by which firms decide the products that they produce. Products that consumers buy will drive future production choices. Products that do not sell as well as expected will receive fewer productive resources in the future. Effectively, consumers are voting for "winners" and "losers" with their purchases. This is used as a fundamental argument in favor of market allocation of goods and services as consumer sovereignty is said to determine future investment and production choices.

Criticism

Some economists, such as Amartya Sen, have said market institutions may not lead to desirable outcomes when agents lack full information about the underlying goods and services.

See also

This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 



Copyright © World Library Foundation. All rights reserved. eBooks from World eBook Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.