Get to know all kinds of markets, complete with explanations of functions and examples

foto: pexel.com

Understanding these different types of markets is important to understanding how the economic system operates.

Brilio.net - A market is a place where sellers and buyers meet to transact goods or services. Along with the development of the times, the concept of the market has undergone significant evolution. From traditional markets that have existed for thousands of years to digital markets that have emerged in the modern era, various types of markets have an important role in the economy.

Market can be defined as:
1. A physical or virtual place for the exchange of goods and services
2. Mechanism that brings together supply and demand
3. A system that facilitates economic transactions

Markets have several main functions:
1. Determine the value (price) of goods and services
2. Organizing production through demand signals
3. Distributing goods and services
4. Carry out rationing
5. Maintain and provide goods and services for the future

There are different types of markets that can be classified based on several criteria, such as form, geographical coverage, time, and type of goods traded. Understanding these types of markets is important to understanding how economic systems operate and how different types of markets meet different needs in society.

1. Based on shape.

a. Traditional Market.
- Characteristics: Physical place, bargaining, direct interaction
- Example: Farmers market, fish market

b. Modern Market.
- Characteristics: Fixed price, self-service, payment at cashier
- Example: Supermarket, mall

c. Online Market.
- Characteristics: Virtual transactions, 24/7 access, global reach
- Examples: E-commerce platforms, online marketplaces

2. Based on geographical coverage.

a. Local Market.
- Characteristics: Serves limited areas, local products
- Example: Village market, grocery store

b. National Market.
- Characteristics: Countrywide coverage, national regulation
- Examples: National stock market, national retail network

c. International Market.
- Characteristics: Involves several countries, international regulation
- Examples: Foreign exchange market, global commodity market

3. Based on time.

a. Daily Market.
- Characteristics: Operating every day, daily necessities products
- Example: Vegetable market, food stalls

b. Weekly Market.
- Characteristics: Operates once a week, more diverse products
- Example: Spilled market, weekly bazaar

c. Seasonal Market.
- Characteristics: Operating at certain times, seasonal products
- Example: Ramadan market, holiday market

4. Based on the type of goods.

a. Consumer Market.
- Characteristics: Selling products for direct consumption
- Examples: Supermarkets, clothing stores

b. Industrial Market.
- Characteristics: Selling raw materials or production equipment
- Example: Iron market, industrial machinery market

c. Service Market.
- Characteristics: Offers services, not physical products
- Example: Salon, workshop

5. Based on structure.

a. Perfect Competition Market.
- Characteristics: Many sellers and buyers, homogeneous products
- Example: Small scale agricultural market

b. Monopoly Market.
- Characteristics: One seller, many buyers, no substitutes
- Example: State electricity company

c. Oligopoly Market.
- Characteristics: Few sellers, many buyers, differentiated products
- Example: Telecommunications industry

d. Monopsony Market.
- Characteristics: Many sellers, one buyer
- Example: Labor market in a small town with one large company

(brl/tin)