Freedom and ownership are honored if people have agreed to take hazards
created therefrom. System of property right is designed to harness human
greed to produce more value without invading others’ property right. People
compete for owner’s consent to transfer property if the target is already owned
by an owner, and to discover, invent or devise new resource, technology and
idea which is to be owned by the first mover. The competition is fair if no
competitor is intruded upon property rights in the process of competition. First
Welfare Theorem supports static efficiency by showing competitive equilibrium
allocates resources efficiently under no externality. Prize-penalty function of
price system raises(lowers) price to encourage(discourage) production in
excess demand(supply) to realize dynamic efficiency. People compete for more
income to result in resource allocation and income distribution. Market failure
occurs when property rights are unduly violated to make resource allocation
inefficient and income distribution unfair. Social welfare benefits are not the
right of the beneficiaries but the favor of benefactors under fair competition.