Markets have been around since history has began. There are hundreds of different kinds of markets such as fish, cloth, agriculture, manufacturing, and etc. Markets have changed dramatically over the course of its many years of existence. It constantly reinvents itself to become more efficient, and resourceful. One can compare markets to natural selection which is a process that essentially eliminates species who are not "fit" enough to pass their genes to their future offspring. Only those that are the fittest live on to successfully pass it genes onto its offspring. Thus a funnel of efficient, successful, and adaptive species arise over many years of evolution. Markets play a similar role by reinventing itself over the course of history. With each reinvention the market becomes more efficient, and shapes itself for the future.
Today, it is safe to say that almost everyone has been to a market and have interacted with transactions. Although they have been to the market and can visualize what it is, I would assume few could provide an explanation of what truly a market place is. What is a market? What are the components that make up a market? Although I have experienced being in a market, even I was unsure of the true characteristics that made a market. According to McMillan, "a market for something exists if there are people who want to buy it and people who want to sell it. The dictionary defines a market as a meeting together of people for the purpose of trade by private purchase and sell, and a public place where a market is held".
The components or characteristics that form a market is through its transaction. In transactions "decision-making autonomy is key. Participation in the exchange is voluntary; both buyer and seller are able to veto any deal." Although the market place is relatively free, "its people are still constrained by limited resources and by the rules of the market place itself." Therefore a definition of a market transaction is "an exchange that is voluntary: each party can veto it, and (subject to the rules of the marketplace) each freely agrees to the terms."
Although the market place is the thriving place for transactions people have different opinions and aspects of the market place. McMillan states "Markets provoke clashing opinions. Some people revile them as the source of exploitation and poverty. Others extol them as the front of liberty and prosperity." In a market place or any other transaction filled area, people have different limitations on their wealth and the ability to purchase goods.The wealthy have more power over what good can be sold to whom and tend to trade with those with equivalent wealth. The rich have more freedom and those who are "poor, the freedom that is essence of markets may be very circumscribed. Bargaining power between buyer and seller is sometimes quite unequal." It is the inequality or the border between poverty and wealth that is defined within the market that raises distrust of such a market.
Sometimes the distrust can be traced between the sellers themselves. For an example in our modern economy technology is the engine for innovation and delivers desired products to the market. With increasing competition there are many instances of sellers "stealing" or "using" intellectual property for their own benefits.With no non-market action such as government intervention to prevent unequal competition, market failure arises. It is this aspect of the market that may cause other people to distrust non-market action. Although I have not observe these opinions in person, I have observe these opinions through the media. I personally lean towards the opinions of people who distrust non-market action, because I believe that in order to have a perfectly competitive market, it needs government intervention time to time to lay out the ground rules related to copy rights and intellectual property. Although too much government intervention can sometimes hurt the market more than it can help it. A market place can be both harmful or unambiguously beneficial, it is not until a market place can find a balance or equilibrium in order to thrive.
McMillan states " a typical market is born and grows like football. It evolves spontaneously driven by its participants. It can operate with little or no formal structure-but only up to a point. To reach a degree of sophistication, its procedures need to be clarified and an authority given the power to enforce them." Although it is true that in order for a market to thrive it needs to be relatively free, but this does not mean that it can grow on forever with out proper guidance. Rules of the economic place where a market exist is set in order to guide a market to reach its full potential. If no rules are enacted and the market is completely free of any limitations it will fail to reach its potential. In terms of football a "absolutely free market is like folk football, a free for all brawl" oppose to a real market (rules and limitations) "is like American football, an ordered brawl." Out of the many rules we have in our modern market, I believe intellectual property right and copy right as well as policies designed to protect our domestic market (if necessary) are the most important rules of a market.
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