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Market socialism Market socialism refers to various economic systems where the means of production are either publicly owned or cooperatively/socially owned and operated in a market economy . Depending on the specific model, the profits generated by socially owned firms could be used to directly remunerate employees, or could accrue to society at large thus becoming the source of public finance , or would be distributed amongst the population in a social dividend . [ 1 ] [ 2 ] Theoretically, the fundamental difference between market socialism and a non-market socialism is the existence of a market for the means of production and capital goods . Market socialism is distinguished from models of mixed economies, because unlike the mixed economy , models of market socialism are complete and self-regulating systems. [ 3 ] Additionally, market socialism is contrasted with social democratic policies implemented in capitalist market economies.