Some have speculated that there could be markets without private property (Rawls, 1971, p. 273), but this seems hopeless. Unless individual managers in a market economy are motivated directly or indirectly by considerations of personal profit in their investment and allocation decisions, they cannot be expected to respond efficiently to prices. Such motivation will occur only if the resources are privately owned, so that the loss is theirs (or their employer’s) when a market signal is missed and the gain is theirs (or their employer’s) when a profitable allocation is secured. Property is a general term for rules governing access to and control of land and other material resources. Because these rules are disputed, both in regard to their general shape and in regard to their particular application, there are interesting philosophical issues about the justification of property.
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