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Types of Markets

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Barter Market

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Exchange of goods or services without using money, direct trade, value is subjective. Example: Local community exchange trading systems (LETS).

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Monopoly

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Single seller, unique product, high barriers to entry, price maker. Example: Local electricity providers.

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Natural Monopoly

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High fixed costs, large economies of scale, single seller. Example: Utilities such as water and gas services.

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Perfect Competition

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Many buyers and sellers, no single entity can influence the market, homogeneous products. Example: Agricultural markets.

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Auction Market

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Price determined by bidding, transparent sale process, single seller multiple buyers. Example: Art auctions at Sotheby's.

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Monopolistic Competition

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Many sellers, product differentiation, some control over price. Example: Retail clothing brands.

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Financial Markets

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Trading of financial securities, efficient allocation of capital, includes stock and bond markets. Example: New York Stock Exchange.

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Foreign Exchange Market

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Trading currencies, determines currency exchange rates, 24-hour trading. Example: USD/EUR currency pair.

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Oligopoly

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Few large producers, barriers to entry, interdependent decision-making. Example: Automobile industry.

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Factor Markets

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Markets for inputs (labor, land, capital), determined by demand and supply of factors. Example: Labor market for software engineers.

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Monopsony

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Single buyer, controls market purchases, price setter for inputs. Example: Defense industry procurement.

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Duopoly

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Market with two producers, potential for tacit collusion, strategic interactions. Example: Boeing and Airbus in the large commercial aircraft market.

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Commodity Markets

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Trading standardized raw materials, price discovery, futures contracts. Example: Crude oil traded on the NYMEX.

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Bilateral Monopoly

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One seller and one buyer, negotiation determines price, unique market dynamics. Example: Exclusive negotiation between a professional sports team and a stadium.

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Predatory Pricing Market

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Entities temporarily set low prices to drive out competition, after which prices rise again. Example: Large retailers selling below cost to undercut small shops.

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Franchise Market

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Buying and selling of franchise rights, branded business models, franchisor-franchisee relationship. Example: Fast-food franchise like McDonald's.

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Black Market

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Illegal or unregulated trading, often due to prohibition or price controls. Example: Smuggled goods in a country where they are banned.

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Stock Market

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Equity shares of companies traded, represents ownership, stock exchanges facilitate trading. Example: NASDAQ.

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Spot Market

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Immediate trade of goods and services, current market price, physical or virtual trading. Example: Electricity spot market.

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Futures Market

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Buying and selling of contracts for future delivery, standardized contracts, used for hedging or speculation. Example: Gold futures contracts.

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