Sociology Index

MARKET ECONOMY

Command Economy

Market economy is an economy in which goods and services are freely exchanged without regulation and where decisions about production and consumption are made by separate individuals each seeking specific needs and desires. In market economy, decisions on investment, production and distribution are based on supply and demand where the prices of goods and services are determined in a free price system.

Market economy is used interchangeably with capitalist economy, but this is an error since a cooperatively based economy can also be on market principles. Market economics may include hypothetical laissez-faire, free market economics, regulated markets and interventionist variants. Free market economy is almost synonymous with Laissez-faire economy, that is, free market without economic intervention and regulation by government.

Free-market economy is often used synonymously with market economy, but this does not preclude an economy from having socialist attributes. Free market economy is the opposite of a controlled market economy. Market economies are regulated by societies and governments in many ways, not allowing full self-regulation by market forces.

The Theory of the Market Economy and the Social Foundations of Innovative Enterprise 
William Lazonick, University of Massachusefts Lowell and INSEAD, Vol. 24, No.1, (2003).
The theory of the market economy as propounded by western economists is more a hindrance than a help. The western economists who propound the theory of the market economy lack a theory of economic development. The 'market economy' is a real phenomenon with economic and political advantages. A society must put in place the organizations and institutions that generate the innovative capabilities to benefit from 'market economy'.

Market Economy and Consumer Rights: The Impact on Women's Everyday Lives and Employment - Malgorzata Fuszara, Univ of Warsaw - Economic and Industrial Democracy, Vol. 15, No. 1, 75-87 (1994).
A free market as one of the elements of freedom, has changed everyday life in Poland. Market economy has changed women's life for the better for example as consumers. The changes have done away with the 'communist myth' of gender equality regarding participation in politics, executive posts held by women or equal pay.

Ideological Basis of the Market Economy: Attitudes Toward Distribution Principles and the Role of Government in Western and Eastern Germany - EDELTRAUD ROLLER - Edeltraud Roller.
Market-economy structures in the former GDR raises the question to what degree a market economy culture exists among East Germans. Empirical evidence analyses show that immediately after unification the East Germans already supported the achievement principle of the market economy to the same degree as West Germans. Planned economy elements stem from system-internal experiences and the market economy elements stem from system-external experiences.

Gender Mainstreaming and Gender Equality in the New Market Economy: An Analysis of Contradictions - Diane Perrons, Social Politics: International Studies in Gender, State & Society 2005.
Diane Perrons takes a different approach by developing a conceptualization of the new economy that highlights the market tendency toward widening gender and class inequalities.

Eucken's Social Market Economy and Its Test in Post-War West Germany - The Economist as Social Philosopher Developed Ideas That Parallelled Progressive Thought in America - By Siegfried G. Karsten.
Walter Eucken's paradigm of a Social Market Economy and "Ordnung" provides a framework for a functional free-market mechanism. Eucken places special emphasis on the integration of economics with "order" and "Justice."

Patterns of Transition from Plan to Market Martha de Melo, Cevdet Denizer, and Alan Gelb.
The transition from a planned economy to a market economy involves a process of institutional, structural, and behavioral change. An index of economic liberalization and analyzes its interaction with growth and inflation from data of twenty-six transition countries for 1989–94.

Price-War Dynamics in a Free-Market Economy of Software Agents 
Jeffrey O. Kephart, James E. Hanson, Jakka Sairamesh (IBM Thomas J. Watson Research Center). 

Envisages the evolution of the Internet into a free-market information economy. The ability of the free-market economy to adjudicate and satisfy the needs of billions of human agents suggests it as a decentralized organizational principle for billions of software agents. Can free-market information economy facilitate the interactions of billions of software agents.

Incomes in Planned and a Market Economy: The Case of the German Democratic Republic and the Former Federal Republic of Germany MARC SZYDLIK, Harvad, William James Hall, Cambridge.
Examines the extents and determinants of earned income inequalities in the German Democratic Republic and the former Federal Republic of Germany.

The market economy unchecked: Another version of fundamentalism? A polemical tribute to Stafford Beer - Leonard A. - Kybernetes: The International Journal of Systems & Cybernetics, Volume 33, 3-4, 2004.
Market economy imposes constraints and makes demands that mirror the rigidity of fundamentalist religions and that this makes answering one fundamentalism with another more likely.

Summary Report of the OECD Emerging Market Economy Forum on Electronic Commerce.
The OECD Emerging Market Economy Forum on Electronic Commerce. Among the emerging themes at that meeting was recognition of differences in access between and within economies known as the 'digital divide'.

The Economics and Politics of Transition to an Open Market Economy: Colombia - Summary. 
Colombia was never a centralised communist state. Reforms did take place, but under a climate of resistance by vested interests and militancy on the part of those who stand most to benefit from reform.

Market economy, health economy? - De Wever A., Faculte de Medecine, Ecole de Sante Publique, Ecole de Commerce Solvay, Institut de Pharmacie, Laboratoire d'Economie de la Sante, U.L.B.
The market economy is different from the state economy, principally conducted by the supply and demand law. The healthcare market put also a health supply and demand forward. The consumer's behavior are different in this particular market which quickly evolves and goes closer to the market economy.

The transition from Soviet system to market economy as a cause of instability in the Estonian coastal fisheries sector - Markus Vetemaa, Redik Eschbaum & Toomas Saat - University of Tartu.
This study analyzes how overall changes in political and economic life during the last decade have affected the Estonian coastal fishery of the Baltic Sea.