Authors: Nohlen
Summary: The concept is dealt with a pure economic perspective: after giving a definition, an analysis of market structure and its consequences on the participants' behaviour is presented, then some conclusive remarks on the role of the state and the uses of market approach in other disciplines are exposed.
Market is the place where demand and supply meet, prices are formed and exchanges are concluded. It is often ruled by states but it can also form spontaneously or out of necessity (black market).
The market structure depends on its perfection (ideal construction where price formation is a consequence of perfect homogeneity in personal, temporal, spatial, substantial and information conditions) or imperfection (more realistic situation) and on the number of participants on both demand and supply sides (monopoly, oligopoly - later discussed - and competition). According to the market structure the market behaviour varies.
The actual imperfection of markets leads to a double role of advertising (between market transparence and consumer manipulation) and to state measures on market freedom and protection according to fundamental economic options (neoliberalism vs. socialist planning).
Finally the growing use of market paradigms, approaches and terminology in other disciplines such as political science is stressed.