Hierarchy and Market: The Mechanism of Policy Implementation Market mechanism Prefect competitive market; At macroscopic level, these individual rational choices will meet and exchange in a prefect competitive market with the following operational principles/assumptions (Stiglitz Walsh, 2002, p. 228; and Stiger, 1986; p. 267) All participants( Firms and individuals)take market price as given; i. e numbers of participants are sufficiently large Actions by individual participants do not directly affect other participants except through price, L.e. they act independently and freely and not collectively, All participants must possess tolerable or even prefect knowledge of the market opportunities; Goods are things that only the buyer can enjoy, i.e. they are private goods. They are of the nature Rivalry in consumption Excludability in useMarket mechanism: … Prefect competitive market: At macroscopic level, these individual rational choices will meet and exchange in a prefect competitive market with the following operational principles/assumptions (Stiglitz & Walsh, 2002, p. 228; and Stiger, 1986; p. 267)) • All participants (Firms and individuals) take market price as given; i.e. numbers of participants are sufficiently large • Actions by individual participants do not directly affect other participants except through price, i.e. they act independently and freely and not collectively; • All participants must possess tolerable or even prefect knowledge of the market opportunities; • Goods are things that only the buyer can enjoy, i.e. they are private goods. They are of the nature – Rivalry in consumption – Excludability in use Hierarchy and Market: The Mechanism of Policy Implementation