Economic Market

An Economic Market is a decisioning system that facilitates the exchange of economically valuable items (of purchasable items) between economic agents via economic market transactions between buyers and sellers.

• Context:
  • It can (typically) have a Market Demand (like the demand for black pearls or lobsters).
  • It can (typically) have a Market Supply (supplied by producers within an industry).
  • ...
  • It can range from being an Simple Economic Market to being a Complex Economic Market.
  • It can range from being an Asset Market to being a Goods Market.
  • It can range from being a Healthy Economic Market (e.g. a competitive market) to being a Failed Economic Market (from market failure).
  • It can range from being a Local Economic Market to being a Global Economic Market.
  • ...
  • It can include Economic Market Structures such as Perfect Competition, Monopoly, Oligopoly, and Monopsony.
  • It can be studied using Microeconomic Theory to analyze individual decision-making and Macroeconomic Theory to understand broader economic impacts.
  • It can operate within various Economic Systems, reflecting different regulatory and operational frameworks.
  • It can take place in a Marketplace, both physical and virtual.
  • It can be measured with a Market Measures (such as: volume, value, and transaction frequency).
  • ...
• Example(s):
  • Financial Markets, such as:
    • a Bond Market, involving the trading of debt securities.
    • a Derivatives Market, trading financial instruments like futures and options.
    • a Foreign Exchange Market (Forex), where currencies are traded.
    • a Cryptocurrency Market, focusing on digital or virtual currencies.
  • Commodity Markets, such as:
    • a Commodities Market, where physical bulk goods like oil, metal, and grain are traded.
    • a Gold Market, specifically for the trading of gold as a commodity.
    • an Energy Market, involving the trading of energy commodities like electricity and natural gas.
    • a local Farmers' Market ...
  • Service Markets, such as:
    • an Attention Market, focusing on the trade of user attention in digital platforms.
    • an Advertising Market, where ad spaces and time slots are bought and sold.
    • an Insurance Market, where various types of insurance policies are traded.
    • a Subscription Market, where continuous access to products or services is sold.
    • an Entertainment Market, driven by the Entertainment Industry, trading media and entertainment products and services.
  • Labor Markets, such as: a U.S. Labor Market.
  • Property Markets, such as:
    • a Real Estate Market, for the buying and selling of property.
    • an Art Market, where artworks are traded.
    • a Collectibles Market, trading in items like vintage watches, coins, or baseball cards.
  • Specific Industry Markets, such as:
    • an Industry Market, such as markets focused on specific sectors like technology or healthcare.
    • an NLP Market, specifically focusing on natural language processing technologies.
  • Auction Markets, facilitating the selling of items through bidding.
  • ...
• Counter-Example(s):
  • a Gift Economy, where goods and services are exchanged without monetary compensation.
  • a Planned Economy, controlled by central authorities without the influence of market forces.
  • a Sharing Economy, exemplified by platforms like Couchsurfing and Freecycle, where services and goods are shared rather than sold.
  • a Subsistence Economy, where production is primarily for personal consumption and not for market trade.
  • a Barter System, where goods are exchanged directly without a monetary medium.
  • situations involving Natural Monopoly or Public Goods, where market mechanisms either cannot function effectively or are absent.
  • ...
• See: Market Research, Good, Service, Consumer Preference, Market Sector, Market Segment, Market Price, Economic Bubble, Auction, Gift Economy, Planned Economy, Sharing Economy, Subsistence Economy, Barter System, Natural Monopoly, Public Goods.

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References

2024

• (Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/Market_(economics) Retrieved:2024-5-14.
  • In economics, a market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labour power) to buyers in exchange for money. It can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any tradeable item to be evaluated and priced. A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of services and goods. Markets generally 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 (local produce or stock registration).

    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. The geographic boundaries of a market may vary considerably, for example the food market in a single building, the real estate market in a local city, the consumer market in an entire country, or the economy of an international trade bloc where the same rules apply throughout. Markets can also be worldwide, see for example the global diamond trade. National economies can also be classified as developed markets or developing markets.

    In mainstream economics, the concept of a market is any structure that allows buyers and sellers to exchange any type of goods, services and information. The exchange of goods or services, with or without money, is a transaction. Market participants or economic agents 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. A major topic of debate is how much a given market can be considered to be a "free market", that is free from government intervention. 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. However, it is not always clear how the allocation of resources can be improved since there is always the possibility of government failure.

2012

• http://en.wikipedia.org/wiki/Market
  • A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. 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. It can be said that a market is the process by which the prices of goods and services are established.

    For a market to be competitive, there must be more than a single buyer or seller. It has been suggested that two people may trade, but it takes at least three persons to have a market, so that there is competition on at least one of its two sides.

    However, competitive markets rely on much larger numbers of both buyers and sellers. A market with single seller and multiple buyers is a monopoly. A market with a single buyer and multiple sellers is a monopsony. These are the extremes of imperfect competition.

    Markets vary in form, scale (volume and geographic reach), location, and types of participants, as well as the types of goods and services traded. Examples include:

    • Physical retail markets, such as local farmers' markets (which are usually held in town squares or parking lots on an ongoing or occasional basis), shopping centers and shopping malls.
    • (Non-physical) internet markets (see electronic commerce)
    • Ad hoc auction markets
    • Markets for intermediate goods used in production of other goods and services
    • Labor markets
    • International currency and commodity markets.
    • Stock markets, for the exchange of shares in corporations.
    • Artificial markets created by regulation to exchange rights for derivatives that have been designed to ameliorate externalities, such as pollution permits (see carbon trading)
    • Illegal markets such as the market for illicit drugs, arms or pirated products.
  • In mainstream economics, the concept of a market is any structure that allows buyers and sellers to exchange any type of goods, services and information. The exchange of goods or services for money is a transaction. Market participants consist of all the buyers and sellers of a good who influence its price. This influence is a major study of economics and has given rise to several theories and models concerning the basic market forces of supply and demand. There are two roles in markets, buyers and sellers. The market facilitates trade and enables the distribution and allocation of resources in a society. Markets allow any tradable item to be evaluated and priced. A market emerges more or less spontaneously or is constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of services and goods.

    Historically, markets originated in physical marketplaces which would often develop into — or from — small communities, towns and cities.^{[citation needed]}

1944

• (Hayek, 1944) ⇒ Friedrich Hayek. (1944). "The Road to Serfdom."
  • NOTE: It argued for the importance of free markets and price signals in conveying information and coordinating economic activity, cautioning against central planning and excessive government control.

1936

• (Keynes, 1936) ⇒ John Maynard Keynes. (1936). "The General Theory of Employment, Interest and Money.” In: Book Publication.
  • NOTE: It introduced the concept of aggregate demand and its influence on economic output and employment, advocating for government intervention in markets during economic downturns.

1890

• (Marshall, 1890) ⇒ Alfred Marshall. (1890). "Principles of Economics."
  • NOTE: It provided a comprehensive analysis of market equilibrium, price elasticity, consumer and producer surplus, and the role of time in market adjustments.

1776

• (Smith, 1776) ⇒ Adam Smith. (1776). "An Inquiry into the Nature and Causes of the Wealth of Nations." In: Book Publication.
  • NOTE: It laid the foundations for understanding how markets operate through the "invisible hand" of self-interest, leading to efficient resource allocation and labor division.

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