Many citizens do not trust the price mechanisms for allocating resources even when it is effective. What are possible strategies for mitigating the mistrust?
One of the biggest arguments against the price mechanism is the issue of equity. However, people do not agree with the price mechanism even when the policy makers implement measures that meet ALL of the equity issues. This is the puzzle.
In my humble opinion, usually the government officials, experts and economists are very arrogant, and do not consult the people. Thus, they are not able to communicate the ideas, and the citizens resist. I think the issue of social trust is extremely important for the effective implementation of social policies.