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That's because making money in a market environment is hard. "Free market" theory predicts that there is no long term economic profit to be made in the face
by actually_a_dog 5y ago
That's because making money in a market environment is hard. "Free market" theory predicts that there is no long term economic profit to be made in the face of a truly free market, in which there is perfect competition among the participants. That means that all profit in the so called "free market" comes from exploiting the conditions which make it not a free market, most prominently, information asymmetries.
- vixen99 5y agoAs lucidly explained by Peter Thiel in Zero to One.
- unraveller 5y ago"There are two types of businesses; ones that fail and monopolies"
- panick21 5y agoThis is not actually what "Free market" theory predicts beyond a very simplistic Economics 101 understanding of it.