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The concept of market has been known since the beginning of a transformation from subsistence economy to goods economy. Gradually the exchange began to take place in places of assembly of people called markets. Hence the beginning of its primary market concept is associated with the place where sellers and buyers of goods and services meet in order to make purchase and sale transaction.

Today, it can also include central city squares and administrative centers. However, it is quite pared down definition of the market, because: firstly it doesn't take into account the fact that the subject of the exchange can be not only goods and services. secondly nowadays, when "the world moved forward ", transactions can take place at a distance, via letter, telephone, telegraph, or computer system without the need for physical contact of buyers with sellers.

Types of markets

Due to the subject of the exchange:

  • market of consumer goods and services
  • market of productive factors

Due to the territorial scope:

  • local market
  • regional market
  • domestic market
  • international market
  • world market

Due to the number of entities:

  • perfect competition market
  • monopolized market
  • monopolistic competition
  • oligopoly
  • oligopson
  • full monopoly
  • full monopsony

Due to the influence of the country on the course of the transaction of purchase and sale:

  • free market
  • market driven

Due to the legality

  • legal market (white)
  • semi-legal market (gray)
  • illicit market (black)

Formal markets

Associated with the institutions organizing trade in goods in specific places and time, and according to established statutory rules of behavior buyers. For these markets include the markets, fairs, auctions, auctions, and auctions.


Author: Sara Skowierzak