The term market designates (material or virtual) the place of meeting supply and demand of and for a property in the economics. From it the market equilibrium results. The basic principle of the market is the exchange. The market price (current market price) is in the trade the price of this property negotiated under momentary market conditions. By use of a generally recognized article of exchange (e.g. Money) can be temporally separated the exchange of the goods against money (the achievement exchange). If this market mechanism does not function, then one speaks of market failure. One subdivided the market into partial markets. The minimum market consists of a Nachfrager, an offerer and a merchandise (commodity or service).

Kinds of markets

Perfect market and imperfect market

See major items: Perfect market

Kinds of markets after the number of market participants - type of market pattern

Markets can be divided depending upon the number of the offerers and Nachfrager into different types of market. The most common organization of the market decreases/goes back thereby on Heinrich of Stackelberg. This divided the market in its (morphologic) type of market pattern according to the number of offerers and Nachfragern, in the sense the competition, into the following pattern:

Kinds of markets after the demand intensity

Beside these types of market it gives in the management economics still:

Kinds of markets after the acted property

Apart from the distinction between (consumer and investment) goods markets and factor markets, on which work and capital are offered and inquired, exists a multiplicity at markets, which characteristics perhaps system-dependent depending upon commercial object exhibit:

• Financial market is a collective term for all markets, which serve the trade of money, securities and financial contracts.
  • Interest market
  • Foreign exchange market
  • Money market
  • Capital market
    • Stock market
    • Pension market
    • Market for Investmentanteile
  • Soil market
  • Property market
• Product market (market for goods and services)
• Job market (market for services dependently persons employed)
• Information market

Market sizes

Market sizes serve the quantitative description of markets. Well-known description instruments for market sizes are:

• Market capacity: Theoretical maximum size of the market, the prices and purchasing power remain unconsidered
• Marktpotenzial: Entire possible sales volume of a market. The Marktpotenzial is the upper border for the size of the market
• Size of the market: Sum of the actually obtained conversions
• Market share: Relative portion of an offerer of the size of the market

Marktverhalten

By Marktverhalten one understands the objectives, strategies, tactics, direct actions and reactions of the individual offerers and Nachfrager at the competition market.

Economically regarded there are three logically possible categories of behaviors of the offerers and the Nachfrager, who can appear also in each case as competitors among themselves, i.e.:

• 1. nothing to do (this is economically nearly always unreasonable),
• 2. to act (i.e. Mark parameter determined, like e.g. Price, quality, service,"…, to set. In a perfect market this is however almost impossible),
• 3. on actions of a competitor to react (i.e. changes of market parameter determined follow. This is the typical way in a functioning competition).

Market functions

• Price formation
• Distribution function of the goods (vs. rationing as Extemfall)
• Evacuation of market (trade to the market price and exclusion)
• Pension formation (price and pensions is orientation for "“next round"”)
• Allokation (steering of the distribution of the factors of production)
• first capital migration into ranges with high producer pension
• Efficiency improvement
  • more Nachfrager come to the course
  • larger quantity is converted
• Promotion of innovation

Phases of a market - economic situation

The economic situation divides the phases of the market. Economic situations are fluctuations of several years of the economic activity in according to the free market organized national economies, which concern the economy as a whole and exhibit with all characteristics a certain regularity.

The Konjunkturphasen are:

1. Expansive phase (upswing)
2. Boom

• • Satisfied market

1. Recession
2. Depression

See also

Free-market economy, market equilibrium, market resistance, market barrier, market depth

Related links

Ralf Wagner: Market and market mechanisms

Articles in category "Market (economics)"

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