Free market

  • in economics, a free market is a system in which the prices for goods and services are self-regulated by the open market and by consumers. in a free market, the laws and forces of supply and demand are free from any intervention by a government or other authority and from all forms of economic privilege, monopolies and artificial scarcities.[1] proponents of the concept of free market contrast it with a regulated market in which a government intervenes in supply and demand through various methods such as tariffs used to restrict trade and to protect the local economy. in an idealized free-market economy, prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy.

    scholars contrast the concept of a free market with the concept of a coordinated market in fields of study such as political economy, new institutional economics, economic sociology and political science. all of these fields emphasize the importance in currently existing market systems of rule-making institutions external to the simple forces of supply and demand which create space for those forces to operate to control productive output and distribution. although free markets are commonly associated with capitalism within a market economy in contemporary usage and popular culture, free markets have also been advocated by anarchists, socialists and some proponents of cooperatives and advocates of profit sharing.[2]

    criticism of the theoretical concept may regard systems with significant market power, inequality of bargaining power, or information asymmetry as less than free, with regulation being necessary to control those imbalances in order to allow markets to function more efficiently as well as produce more desirable social outcomes.

  • economic systems
  • concepts
  • criticism
  • see also
  • notes
  • further reading
  • external links

In economics, a free market is a system in which the prices for goods and services are self-regulated by the open market and by consumers. In a free market, the laws and forces of supply and demand are free from any intervention by a government or other authority and from all forms of economic privilege, monopolies and artificial scarcities.[1] Proponents of the concept of free market contrast it with a regulated market in which a government intervenes in supply and demand through various methods such as tariffs used to restrict trade and to protect the local economy. In an idealized free-market economy, prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy.

Scholars contrast the concept of a free market with the concept of a coordinated market in fields of study such as political economy, new institutional economics, economic sociology and political science. All of these fields emphasize the importance in currently existing market systems of rule-making institutions external to the simple forces of supply and demand which create space for those forces to operate to control productive output and distribution. Although free markets are commonly associated with capitalism within a market economy in contemporary usage and popular culture, free markets have also been advocated by anarchists, socialists and some proponents of cooperatives and advocates of profit sharing.[2]

Criticism of the theoretical concept may regard systems with significant market power, inequality of bargaining power, or information asymmetry as less than free, with regulation being necessary to control those imbalances in order to allow markets to function more efficiently as well as produce more desirable social outcomes.

Other Languages
Afrikaans: Vrye mark
العربية: سوق حر
asturianu: Mercáu llibre
azərbaycanca: Sərbəst bazar
български: Свободен пазар
català: Mercat lliure
čeština: Volný trh
Cymraeg: Marchnad rydd
Ελληνικά: Ελεύθερη αγορά
español: Mercado libre
Esperanto: Libera merkato
euskara: Merkatu libre
français: Libre marché
한국어: 자유시장
Bahasa Indonesia: Pasar bebas
italiano: Libero mercato
עברית: כלכלת שוק
Kiswahili: Soko huria
lietuvių: Laisvoji rinka
lumbaart: Liber mercaa
македонски: Слободен пазар
Bahasa Melayu: Pasaran bebas
Nederlands: Vrije markt
日本語: 自由市場
oʻzbekcha/ўзбекча: Erkin bozor
polski: Wolny rynek
português: Mercado livre
română: Piața liberă
Simple English: Free market
slovenčina: Voľný trh
srpskohrvatski / српскохрватски: Slobodno tržište
svenska: Fri marknad
тоҷикӣ: Бозори озод
Türkçe: Serbest piyasa
українська: Вільний ринок
Tiếng Việt: Thị trường tự do
粵語: 自由市場
中文: 自由市場