Free Markets and Fettered Consumers

Are consumers sufficiently self-interested and self-reliant so that privatized markets deliver the efficiency and welfare gains they promise? Why are consumers uncomfortable in markets, and in some case sufficiently opposed to market solutions to prevent their implementation? What can be done to prepare consumers so that they function satisfactorily in markets, and understand the advantages of market-based resource allocation? This paper examines the foundations of consumer behavior and attitudes in markets, and proposes a program of scientific research to determine how consumers cope in privatized markets, and the implications for market design of the limits of self-reliance.