Electronic Markets for the Allocation, Financing and Distribution of Public Goods

Recent research on the usage of electronic markets in Digital government has mostly focused on the government’s Executive branch. The paper discusses three conceptual concerns that obstruct the broader application of electronic market mechanisms to the Legislative branch of the government instead. A systematic examination of these concerns shows that most of them can be addressed with little effort. We also show how electronic markets can be used to not only improve public decision-making within the parameters of existing political tradition but they can be used as a driver for progressive changes in the organization of democratic governments.