What is the Difference between the two markets?

Answer 1

Due to the vast number of applications to this question, you may have better luck asking it in a more specific way. Please try to avoid ambiguous questions in the future. If you meant "what is the difference between a free market environment and a centrally planned model?" I would answer as such. A free market utilizes little governmental regulation and includes private ownership of the vast majority of institutions. On the contrary, a centrally planned model theoretically entails complete governmental control over all facets of production. Of course, there also exist other forms of economies, such as transitional and mixed, which may have parts of both.