Consumer Education as the Means to Attain Efficient Market Performance

In this paper the markets in which individual consumers buy goods and services are analyzed in accordance with the economic theory of market organization. The poor market performance characteristics identified by those in the consumerism movement are found to be consistent with expectations based on this theory. The possibility of achieving efficient market performance through consumer education programs is rejected. At best it would be an inefficient means to the desired end. Several alternative means are suggested for further consideration. They involve changes in the rules under which the economic system operates and therefore will not be easy to achieve.