Market evolution

Market evolution takes place along with society development. The market formations has 3 periods:

1) XV – the beginning of XIX century – market of free competition creates. Smith said, that state played a part of night guard (that is, state didn’t absolutely interfere in market mechanism). That was a seller market, where the production conception dominated, the essence of which – to produce necessary commodities and satisfy the demand on them.
2) XIX – the middle of XX century seller market changed into buyer market, production conception changed into realization conception, the essence of which – the analysis of needs and organization of commodities production and sale.
3) The end of XX century – social market is created by state. Production changed from satisfaction of mass needs to mass satisfaction of individual needs. The priority turned from producer to user.

Market should be considered as a complex category that includes the sphere of circulation, where the exchange of goods and services takes place and the system of money-commodity relations, formed in the process of exchange of goods and services at the existing system of production relations.

Market is a system of economic relations between people who are involved in the processes of production, allocation, exchange and consumption.

In a broader sense market is a set of social institutions within which a great number of specific types of exchanges take place, when these institutions assist these transactions, adding them some structure.