Market

DEFINITION of market

A market is one of the many varieties of systems, institutions, procedures or social relations whereby parties engage in exchange.

WHAT IT IS IN ESSENCE

Parties may exchange goods and services by barter. Most of them rely on sellers offering their goods or services in exchange for money from buyers. Also, it is the process by which the prices of goods and services are establishing. 

They make possible trade and enable the distribution and resource allocation in a society. Markets provide any tradable item to be evaluating and pricing.

Also, they may emerge spontaneously or deliberately by human interaction.  In order to enable the exchange of services and goods. Generally, they supplant gift economies and are often held in place through rules and customs. Such as a booth fee, competitive pricing, and source of goods for sale like local produce or stock registration.

It is generally defined as a medium through which assets are traded, with their value determined by supply and demand.

It can refer to:

  • a broad grouping of assets or an index
  • a place, physical or nominal, that facilitates buying and selling of assets, like the stock market
  • the trading and movements of financial assets as a whole like ‘the markets’, or ‘financial markets’
  • the price at which an asset is being traded known as the market price

In mainstream economics, the concept behind is any structure that allows buyers and sellers to exchange.

What? Any type of goods, services, and information.

The exchange of goods or services, with or without money, is a transaction.

Contributors are all the buyers and sellers of a good who influence its price. The very important topic of debate among experts is how much a given market can be considered to be a “free market”.  Meaning free from government intervention.

Microeconomics traditionally focuses on the study of its structure and the efficiency of market equilibrium. When the latter is not efficient, then economists say that a market failure has occurred.

However, it is not always clear how the allocation of resources can be improved since there is always the possibility of government failure.