1. The core tenant of capitalism remains true- if you reward a particular action, people will tend to repeat that action. The critical failure of free market capitalism is that it doesn't discriminate between positive and negative actions. Sony and Nintendo make more money selling people games they already own than they do making their systems compatible with them, for example. This is clearly not ideal- we are rewarding an action that results in an inferior product to what could have otherwise been created. So, what we need is a different reward structure, one that still rewards people for creating successful products but that does not reward them for creating new iterations of old products that result in the loss of key functionality. And thus we arrive at regulations.

    Tuesday, 15-May-12 11:24:07 UTC from web

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