black market

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Black market

An illegal market.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Underground markets result from a combination of enforcement standards that are too low and too many operating rules for a given level of commercial activity.
In Communist Hungary, underground markets flourished and were an important source of goods and services that could not have been obtained otherwise.
The demand function externalities consisted of offshore markets having too high standards and/or too few rules for a given level of commerce and underground markets having too low standards and/or too many rules for a given level of commerce.
Rather, they serve as GAAMA incentives to direct the order flow to controlled, offshore, balkanized, or underground market that is the low-cost point of sale.
As with the earlier anti-cocaine campaign on the West Side, the ultimate effect of the crackdown was a shift of the center of operations for the underground markets. Now, the drug trade moved further south, into Chicago's Black Belt.
The old legal market gradually faded away, the victim of informal pressure and formal legal restrictions, and was slowly replaced by an underground market bearing most of the characteristic features of the contemporary illicit drug trade.
We'll continue our market impacts and analysis in the February issue with our exclusive, in-depth Sewer & Water Municipal Survey and a look at what underground markets may face in 2006 from the federal regulatory arena.
This association serves the sewer rehabilitation market, but its lessons are very much applicable to all underground markets.
Further encouraging to the underground markets are telecommunication analyses and reports taking issue with the "America is overbuilt" theory.

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