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[ox-en] Free market and the Internet (was: Re: price of software)



Hi Russell and other free market advocates out there!

Though I do not know the theory of free markets very well, here is my
(Euro ;-) ) cent.

Last week (11 days ago) Russell McOrmond wrote:
On Mon, 20 Jan 2003, MJ Ray wrote:
Maybe it is better to say that free software cost tends to zero as the
number of licensees increases?  (in a Smith-capitalist market, that is)

  As a Smith-economist might say: "Free as in Free Market, not as in
beer".

  To have truly Free Markets (an ideal concept, not something we see
examples of), there needs to be so much in place first  -- part of that is
an informed customer base, which when it comes to FLOSS is clearly nowhere
near the case.

I think the Internet is the best example of a ideal free market of
information goods mankind had a chance to experience until now. There
is a customer base which is as well informed as you like. There is
perfect competition because the competitor is only a mouse click away.
The transaction costs for an information good is the same for all and
marginal. No state intervention for the very most part of it.

The funny thing is, that this nearly perfect free market results in
the opposite of what the free market advocates are claiming: No profit
(ok, only in *very* few sectors like pornography (which is an
interesting thing BTW)). Instead a abundance of public available goods
with no price - like this list :-) .

Where I'm wrong?


						Mit Freien Grüßen

						Stefan

_______________________
http://www.oekonux.org/



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