I think there is a choice element around "free" as well. I think functional markets can be relatively free (and regulated) but they can also be not free (closed to certain actors, structured with elements of compulsion) and yet also be functional.
Efficient allocations are theoretical (in the sense of not computable within the lifetime of the universe on a real machine) when you move past a handful of actors and a handful of goods. Functional markets don't make efficient allocations - they make allocations that the actors can sustain.
Efficient allocations are theoretical (in the sense of not computable within the lifetime of the universe on a real machine) when you move past a handful of actors and a handful of goods. Functional markets don't make efficient allocations - they make allocations that the actors can sustain.