black market

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Black market

An illegal market.

Black Market

A market for products that are illegal, stolen, or otherwise need to be hidden from regulatory authorities. A black market encompasses the horrific (e.g. human trafficking) as well as the more mundane (e.g. participating in the market to evade taxes). Legal products on a black market are usually less expensive than on the regulated market because sellers do not pay taxes on their goods and services. That said, there is little or no recourse for the customer if and when a black market product fails. It is worth noting that black markets tend to be largest in jurisdictions where there are the most regulations and government monopolies. It is also known as an underground market.

black market

an unofficial or ‘under-the-counter’ MARKET trading in a product which the government has declared to be illegal (for example narcotic drugs), or on the sale of which the government has imposed controls thus limiting its availability.

black market

an ‘unofficial’ market that often arises when the government holds down the price of a product below its equilibrium rate and is then forced to operate a RATIONING system to allocate the available supply between buyers. Given that some buyers are prepared to pay a higher price, some dealers will be tempted to divert supplies away from the ‘official’ market by creating an under-the-counter secondary market. See BLACK ECONOMY.
References in periodicals archive ?
In societies of this nature, it is not surprising that large underground economies arise.
As a consequence, except for those imaginary societies whose political systems are perfectly responsive to citizens' desires, we can expect to observe underground economies universally.
For these reasons, it should not be surprising to discover the existence of underground economies even in societies with political organizations that differ substantially from the totalitarian or plutocratic states reviewed above.
To view the market and politics as no more than alternative mechanisms for the aggregation of citizens' desires, however, puts into question the conventional moral condemnation of the underground economies.
The moral defense of the market and, by extension, of underground economies, has been far less well developed.
Finally, the underground economies provide substantial evidence of the success of the market in contrast to politics, in terms of promoting what might be called the Rawlsian value of protecting those least advantaged in society.
In contrast, elements of underground economies that have no positive effect on the deadweight loss from political policies cannot be morally defended.
108) In the first instance, we might observe that the relative magnitude of underground economies is a measure of the relative degree of deadweight loss from taxation.
Those who condemn underground economies seem to presuppose that all government money is spent on true public goods.

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