market mechanism


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Market Mechanism

The use of the purchase and sale by some medium of exchange (money) to distribute goods and services throughout an economy. The market mechanism contrasts with other ways of distributing goods and services, including redistribution of wealth and bartering. While the market mechanism is associated with the free market, the two are separate concepts. For example, one can have a heavily regulated economy that still uses the market mechanism.

market mechanism

see PRICE SYSTEM.
References in periodicals archive ?
Jose Layug Jr NREB chair, said the draft rules for the renewable energy market mechanism are expected to be finished by the yearend.
The potential buyers remained busy in hedging as they were maintaining the market mechanism.
He said the 50 kilo sac of sugar is now standing at 445 SDG for kinana produce and 435 SDG for Genaid produce against 100 SDG a kilo for the 10kilo sac He said this increase is phenomenal compared to the general prices saying this increase was due to the market mechanism approach adopted by the company with regards to the price of sugar But he said he expects the prices to go down by the end of current month of Ramadan, as sugar consumption would go down as well.
However, new products would bring down medicine prices because of free market mechanism.
We made a decision about medium-term pricing policy last year and this was the first step to create competitive environment and to launch a market mechanism in energy sector," Sariyev said.
1, were supposed to address, including a 20 percent reduction in private passenger auto premiums and an end to the JUA, New Jersey's residual auto market mechanism.
He has proposed an adequate gas market mechanism in Turkey, combining spot and futures trading facilities, needed for itself and for convergence with the EU's spot market mechanism - more so if and when the ICE in London has developed natural gas futures trading as in New York.
Ijaz Khokhar, Chief Coordinator and Former Chairman of PRGMEA, said while the country was facing shortage of cotton yarn, APTMA rejected the value-added textile industry's plea of banning yarn exports, saying it would be intervention of free market mechanism.
Going forward, the European Commission will need to work on more structural measures to turn the market mechanism into a success as tool to reduce GHG emissions in the EU effectively.
The market mechanism developed and evolved over millennia from hunter-gatherer tribes through barter to voluntary and beneficial exchange of goods.
The immediate significance of this is the confidence in the market that the solar energy industry could sustain itself through market mechanism and not necessarily only through subsidies and feed-in tariffs.
That is why, he added, APTMA has never supported intervention to free market mechanism even in worst circumstances and opposed always a ban on cotton export.