Why companies are running on controlled market principles while supporting free markets?

There are three common market systems dominate the world today: free Market, Controlled market and Mixed market.

A free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions.

Command market is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods are offered for sale. It also determines investments and incomes.

Mixed Market: A mixed economic system has features of both a command and a free market system. A mixed economy is partly controlled by the government and partly based on the forces of supply and demand. Generally, a mixed economic system involves a public sector and a private sector. Most of the main economies in the world are now mixed economies. There is limited government regulation in a mixed economy, while there are heavy government regulation and control in a command economy.

As I mentioned before in my post about Chaos and Order, The mixed market is probably the best place to be as it is the gray area between two opposites that complement one each other and create a whole. To prove that most people see the world in a deterministic way and to support the argument of this post, all the pools that I found where consistent and show that 69 percent or more of the population prefer free market (while in reality the majority are mixed markets). A new Rasmussen Reports national telephone and online survey ( from 7/2018) finds that 74% of Likely U.S. Voters prefer a free market. Another pool, done by Reason-Rupe (from 2/2015) finds out that Americans have the most favorable reaction to free markets (69%), followed by capitalism (55%), socialism (36%), and coming in last was a government-managed economy (30%).

It’s not a surprise that people prefer free-market. Most people are subject to deterministic thinking and they prefer free over control. People also prefer the┬ábenefits that associate with the free market, as published by Forbes (11/2016):

  1. Median income is really rising
  2. Free trade saves us trillions
  3. Free markets know what we want
  4. Innovators are rewarded, consumers benefit
  5. Failed businesses are punished, economic growth accelerated
  6. Free markets match buyers and sellers
  7. Competition keeps prices low
  8. Price signals work
  9. Freedom
  10. Free markets make things work

One way or another, a solution that gives a certain level of autonomy and distribution of decision making to players in the market is the preferred solution in reality and perception. When it comes to markets, people prefer “Autonomy and distribution of power” over “centralization and control”.

Now let’s dive deep into one type of player in the market: Companies. Companies and business will be the biggest proponent of the free market and free-market ideas, but the ideas they want to see running the market are not the principles that they are following to run themselves. The majority of the companies are still running following the principles of the central market. For many companies, the ideas of autonomy and distribution of decision making are good for the economy but for some reason are not suitable for companies.

Why? All the benefit of the free market (listed above) are the fruits of free economy concepts. If companies adopt those concepts, they can see the fruits internally, but they are not. Instead of that, companies are based on ideas of a controlled market, a system that we all saw falling apart.

I believe that it is time to adopt free economy principles in companies. If you think the same, don’t wait! If you need any help, we are here to help you.

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