Market (economics)

marketmarketsglobal marketmarket forcescattle marketmarketplaceMarket Economicsmarket sizeMarket economiesmarket volume
A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange.wikipedia
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Trade

tradingmercantileexchange
Markets facilitate trade and enable the distribution and resource allocation in a society.
A system or network that allows trade is called a market.

Supply and demand

demandsupplylaw of supply and demand
Market participants consist of all the buyers and sellers of a good who influence its price, which is a major topic of study of economics and has given rise to several theories and models concerning the basic market forces of supply and demand.
In microeconomics, supply and demand is an economic model of price determination in a market.

Market failure

market failuresmarket imperfectionmarket imperfections
Microeconomics traditionally focuses on the study of market structure and the efficiency of market equilibrium; when the latter (if it exists) is not efficient, then economists say that a market failure has occurred.
Public goods are both non-rival and non-excludable (i.e., public goods are not only non-excludable) thus existence of a market failure is often the reason that self-regulatory organizations, governments or supra-national institutions intervene in a particular market.

Resource allocation

allocationallocation of resourcesallocate
Markets facilitate trade and enable the distribution and resource allocation in a society.
In the context of an entire economy, resources can be allocated by various means, such as markets or central planning.

Barter

barter economybarteringbarter trade
While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labor) in exchange for money from buyers.
Adam Smith, the father of modern economics, sought to demonstrate that markets (and economies) pre-existed the state, and hence should be free of government regulation.

Market participant

market participation exception
Market participants consist of all the buyers and sellers of a good who influence its price, which is a major topic of study of economics and has given rise to several theories and models concerning the basic market forces of supply and demand.
For example, buyers and sellers are two common types of agents in partial equilibrium models of a single market.

Private electronic market

A market can be organized as an auction, as a private electronic market, as a commodity wholesale market, as a shopping center, as a complex institution such as a stock market and as an informal discussion between two individuals.
A private electronic market (PEM) uses the Internet to connect a limited number or pre-qualified buyers or sellers in one market.

Labour economics

laborlabor marketlabour market
Labor markets: where people sell their labour to businesses in exchange for a wage
Labour economics seeks to understand the functioning and dynamics of the markets for wage labour.

Financial market

financial marketsmarketmarkets
Financial markets facilitate the exchange of liquid assets.
A financial market is a market in which people trade financial securities and derivatives such as futures and options at low transaction costs.

Externality

externalitiesnegative externalitiesnegative externality
Artificial markets created by regulation to exchange rights for derivatives that have been designed to ameliorate externalities, such as pollution permits (see carbon trading) Market failures are often associated with time-inconsistent preferences, information asymmetries, non-perfectly competitive markets, principal–agent problems, externalities, or public goods.
Thus, unregulated markets in goods or services with significant externalities generate prices that do not reflect the full social cost or benefit of their transactions; such markets are, therefore inefficient.

Minimum wage

minimum-wageminimum wagesfederal minimum wage
Markets can differ by products (goods, services) or factors (labour and capital) sold, product differentiation, place in which exchanges are carried, buyers targeted, duration, selling process, government regulation, taxes, subsidies, minimum wages, price ceilings, legality of exchange, liquidity, intensity of speculation, size, concentration, exchange asymmetry, relative prices, volatility and geographic extension.
This disagreement usually takes the form of competing empirical tests of the elasticities of supply and demand in labor markets and the degree to which markets differ from the efficiency that models of perfect competition predict.

Carbon emission trading

carbon tradingcarbon marketcarbon emissions trading
Artificial markets created by regulation to exchange rights for derivatives that have been designed to ameliorate externalities, such as pollution permits (see carbon trading)
Coase's model assumes perfectly operating markets and equal bargaining power among those arguing for property rights.

Economist

economistseconomicsgovernment economist
There exists a popular thought, especially among economists, that free markets would have a structure of a perfect competition.
Within this field there are many sub-fields, ranging from the broad philosophical theories to the focused study of minutiae within specific markets, macroeconomic analysis, microeconomic analysis or financial statement analysis, involving analytical methods and tools such as econometrics, statistics, economics computational models, financial economics, mathematical finance and mathematical economics.

Economy

economiceconomiesnational economy
Market participants consist of all the buyers and sellers of a good who influence its price, which is a major topic of study of economics and has given rise to several theories and models concerning the basic market forces of supply and demand.
However, the prevailing view was that held by John Maynard Keynes (1883–1946), who argued for a stronger control of the markets by the state.

Dynamic inconsistency

time inconsistencyTime consistencytime-inconsistent
Market failures are often associated with time-inconsistent preferences, information asymmetries, non-perfectly competitive markets, principal–agent problems, externalities, or public goods.
For example, a firm might want to commit itself to dramatically dropping the price of a product it sells if a rival firm enters its market.

System

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

Supply (economics)

supplysupply curvesupplies
The supply curve could be derived by superimposing a representative firm supply curves for the factors of production and then market equilibrium would be given by the intersection of demand and supply curves.
In economics, supply is the amount of something that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace.

Product (business)

productproductsmerchandise
The marketer E. Jerome McCarthy proposed a four Ps classification (product, price, promotion, place) in 1960, which has since been used by marketers throughout the world.
In marketing, a product is a system made available for consumer use; it is anything that can be offered to a market to satisfy the desire or need of a customer.

Microeconomics

microeconomicmicroeconomic theoryprice theory
Microeconomics (from Greek prefix mikro- meaning "small" and economics) is a branch of economics that studies the behavior of individuals and small impacting organizations in making decisions on the allocation of limited resources (see scarcity).
Supply and demand is an economic model of price determination in a perfectly competitive market.

Market segmentation

market segmentsegmentationmarket segments
Businesses market their products/services to a specific segments of consumers.
Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics.

The Market for Lemons

market for lemonsThe Market for Lemons: Quality Uncertainty and the Market Mechanismlemon
Akerlof considered the problem of bad quality cars driving good quality cars out of the market in his classic "The Market for Lemons" (1970) because of the presence of asymmetrical information between buyers and sellers.
Akerlof's paper uses the market for used cars as an example of the problem of quality uncertainty.

Capitalism

capitalistcapitalistscapitalistic
Reference to actual markets can show capitalism not as a totalizing force or completely encompassing mode of economic activity, but rather as "a set of economic practices scattered over a landscape, rather than a systemic concentration of power".
Market economies have existed under many forms of government and in many different times, places and cultures.

Price discrimination

price discriminatediscriminatory pricingproduct versioning
The monopoly model, already considered by marginalist economists, describes a profit maximizing capitalist facing a market demand curve with no competitors, who may practice price discrimination.
In a theoretical market with perfect information, perfect substitutes, and no transaction costs or prohibition on secondary exchange (or re-selling) to prevent arbitrage, price discrimination can only be a feature of monopolistic and oligopolistic markets, where market power can be exercised.

Black market

underground economyblack moneyblack-market
There can be black markets, where a good is exchanged illegally, for example markets for goods under a command economy despite pressure to repress them and virtual markets, such as eBay, in which buyers and sellers do not physically interact during negotiation.
A black market, underground economy, or shadow economy is a clandestine market or transaction that has some aspect of illegality or is characterized by some form of noncompliant behavior with an institutional set of rules.

Information asymmetry

information asymmetriesasymmetric informationimbalances in information
Market failures are often associated with time-inconsistent preferences, information asymmetries, non-perfectly competitive markets, principal–agent problems, externalities, or public goods.
Akerlof demonstrates that it is even possible for the market to decay to the point of nonexistence.