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
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 -
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
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 198994.
Price-War Dynamics in a Free-Market Economy of Software Agents
Jeffrey O. Kephart, James E. Hanson, Jakka Sairamesh (IBM Thomas J. Watson Research
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
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 -
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
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.