Original sentence: Capitalism — both the word and the system to which it refers — is an object of considerable contention, and definitions disagree (see definitions of capitalism).In common usage it refers to an economic system, dominant in the Western world since the breakup of feudalism, in which most of the means of production are privately owned and production is guided and income distributed largely through the operation of markets.Some instead label the dominant economic systems in Western world mixed economies or state capitalism
Edited sentence: (see also definitions of capitalism).Capitalism is an economic system where private property rights are exchanged in markets that under conditions of relative freedom exhibit spontanous order, an equilibriating of price, supply and demand.During the Industrial Revolution, mercantilism was replaced by less restrained market conditions exhibiting much of the spontanous order of capitalism.Economies throughout history and in various parts of the world exhibiting this market behavior are generally called capitalist or mixed economies depending on the extent of government intervention beyond mere protection of property and contractual rights.The abstraction of unrestricted markets serves as an analytic tool in which real world markets are modeled as perturbations of that abstract ideal behavior.Various levels of information costs, transaction costs and other restrictions are imposed upon the ideal behavior in an attempt to replicate the behavior of real world markets