It is the mechanism in which the players of the market have extensive control over the market. The individual player decides the destiny of the market without accepting the challenges of the regulatory authorities like control over the efficacy of market factors. As a result, the price determination, product distributions and other supply or acquisition factors are playing with the hands of market players.
The market players or operations are the guide, philosophers and the utilities of the entire market forces. Hence, it is the market in which 100% autonomy is granted to the elements interacting the market.
The consequentialist, in their utilitarian norms, can provide a powerful way of thinking about the business activity and this could also be is found in the v defense of the free market.
The free market approach to national economic policy is being organized for a principal reason – free market economies are the most productive, and means that more people benefit that under any other economic scheme. The free market creates a greater totality of wealth i.e. available for distribution to a greater number of people.
In a free market economy more people will have more goods and services and be able to participle more fully in the economic life of the society.
As implied to business practices this implies that companies must honour the freedom of marketplace and any attempt by a company to manipulate the market so as to reduce this freedom is unethical.
Example- price fixing collusion to restrict the supply of good and services and other anti – competitive practices.