Human beings are after ideas for getting their job done better, by consuming fewer resources. The Market Economy focuses on capitalizing this inherent characteristic, known as praxis, for offering increasing prosperity to a growing number of people from depleting sources. Hence, the market economy adopted principles of ownership of capital and freedom of competition to profit from ideas, while offering better quality products at decreasing cost.
However, the race of leveraging ideas in improving the quality and decreasing the cost leads to the price-setting capability of the winning firm. Consequentially, winning firms set the price to make a profit, while compelling competitors to take lower prices and incur a loss. As a result, the market gets monopolized and competition to profit from ideas slows down. Particularly, increasing economies of scale and scope effects, due to the zero cost of copying software, and network externality effect, due to connectivity over the Internet, are accelerating this space of monopolization. Such a reality is weakening the capacity of the market economy in offering us the increasing quality of living standards out of profit-making competition in pursuing ideas.
