A preorder economy is a type of proposed future economy where the exact demand for goods is known ahead of time, before any material production takes place. It has been discussed within the framework of
ecological economics.
Just-in-time manufacturing
Creating a preorder economy has recently been proposed as an
economic efficiency
In microeconomics, economic efficiency, depending on the context, is usually one of the following two related concepts:
* Allocative or Pareto efficiency: any changes made to assist one person would harm another.
* Productive efficiency: no addit ...
solution to the environmental problems facing modern society. These environmental challenges are believed to be caused in part by unsustainable levels of production, consumption and advertising related to the imperfect exchange of information in market economies. Therefore, preorder economy theory advocates using the
Internet
The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, pub ...
as the means to coordinate all production with existing consumer desires, so that almost nothing is made which does not have someone ready to buy it. This is the idea of
just in time manufacturing taken to its logical end.
See also
*
Assurance contract
An assurance contract, also known as a provision point mechanism, or crowdaction, is a game-theoretic mechanism and a financial technology that facilitates the voluntary creation of public goods and club goods in the face of collective action p ...
References
Stanley, Conrad. (2006) "The Preorder Economy: Coordinating Supply and Demand on the Way to a Sustainable Future", International Journal of Environment, Workplace and Employment, Vol. 2, Nos. 2/3, pp. 180–205.
Ecological economics
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