Power and Market: Government and the Economy

3. Triangular Intervention

A TRIANGULAR INTERVENTION, AS WE have stated, occurs when the invader compels a pair of people to make an exchange or prohibits them from doing so. Thus, the intervener can prohibit the sale of a certain product or can prohibit a sale above or below a certain price. We can therefore divide triangular intervention into two types: price control, which deals with the terms of an exchange, and product control, which deals with the nature of the product or of the producer. Price control will have repercussions on production, and product control on prices, but the two types of control have different effects and can be conveniently separated.

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