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 ?
It would appear from internal comments that the administration has no firm ideas with respect to the nature of the prospective residual market mechanism. There does not appear to be a consensus as to whether this shall be an Assigned Risk Plan, a (true) Joint Underwriting Association, or a "whatever." To the extent that this columnist has a substantial background and experience in residual market mechanisms, most particularly those involving auto insurance, I do believe it would be out of order or inappropriate for me to venture my thoughts on the subject.
However Chairman APTMA has made clear that the import under DTRE or manufacturing bond should be exempted from regulatory duty as APTMA believes in free market mechanism and the regulatory duty should be exclusively meant for domestic industry on domestic use of fine count cotton yarn.
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. However, now as global yarn prices are on a fall, the spinners intend to block imports and sell their produce in local market at higher prices.
| SIR - The so-called unequal distribution of income receives a bad press, but let's be quite clear that the market mechanism, through our global buying preferences, made David Beckham the icon that he is.
In both cases, the effectiveness of the market mechanism and competition principles must be interpreted as a given or granted.
The RO was designed as a market mechanism to increase the uptake of renewables; ROCs have increased the profitability of renewable energy generation as the certificates have an additional value over and above the price of electricity itself.
State-owned oil company PT Pertamina confirmed the order has been implemented to follow market mechanism and the price of industrial diesel oil at present is Rp 4,700 per liter as against Rp 2,200 for other consumers.
With the idea and practice of school voucher program, the introduction of the market mechanism benefits the innovation of education fiscal system, the competition between schools, improvement of the education quality and parents' needs of school choice; it benefits the development of non-governmental education; it helps to build a better school governance situation.
One of the fears is that the growing economic role of the public sector, including the Bank of Japan, being promoted as part of the government'-s efforts to tackle deflation, may lead to a paralysis of the market mechanism. What is urgently called for now is liberalization of the public services on par with the breakup of the chaebol in South Korea.
27 to discuss issues related to developing countries, while they will have talks in Washington on March 1 on issues related to the market mechanism, they said.
If the public financial corporations continue to provide long-term, low-rate fixed loans with the government's massive financial support, the fair market mechanism will be distorted, it said.
And although Hansen assumes that the desires of audiences affected film making, she does not provide us with an understanding of the market mechanism which would allow patrons' wishes to inform Hollywood production.