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Division of labor by the market does not result in a fair distribution of value.

Aug 23, 20243 min read

Division of labor by market does not lead to [equitable distribution of value

A case in point Mr. P uses the labor of 1 to make part A and sells it at 2 in the market. Mr. Q buys part A at market for 2, uses 1 labor to make finished product A+B, and sells it at market for 4 At this time, both P and Q get 2 for the effort of 1, and the value of the final product 4 is well distributed.

Another case Mr. P uses the labor of 1 to make part A and sells it at 2 in the market. Mr. Q buys part A at the market for 2, uses 1 labor to make finished product A+B, and sells it at the market for 10 At this time, Mr. P gets 2 for 1 effort and Mr. Q gets 8 for 1 effort. The value 10 of the final product is not well distributed.

There are those who consider this situation as “that is the way the market is and the status quo is correct” and those who consider “this is a case where the market does not work well, the status quo is not correct”.

  • As for OSS, the argument is that idyllic, loosely restricted licenses are going to cause problems, right?
  • [Elastic names AWS; changes to Elasticsearch and Kibana licenses to prevent AWS from offering them as managed services on its own - Publickey https://www.publickey1.jp/blog/ 21/awselasticelasticsearchkibanaaws.html] Elastic issue.

Plurality book p.228 image If there is synergy in combining parts, the harvest will increase in value, so that those who put in the labor later will produce more value per effort. If everyone who cooperates is paid the same as the last person, the profit margin would be negative. On the other hand, if this composition is left unchecked, the total amount of cooperation in society will decrease because those who move early in the process will lose out because they pay less for their labor, thus creating a bias to avoid it.

OLD TITLE: Division of labor by market only works well when the whole is simply the sum of its parts

  • I had Supermodular Goods in mind when I wrote it, but decided against it because it was overly abstract.

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