What is a market order

Market organization

An intervention system of measures created according to the Market Regulation Act (MOG), through which supply and demand as well as prices of certain goods are regulated. A basic distinction is made between:
The total regulation of the supply quantities and purchase authorizations through central administrative measures (for example allotments, production control via production or use bans). They are common in centrally administered economies.
State or other official influence on the market (for example by setting market times, maximum and minimum prices, quality standards). They are also used in numerous market economy systems, mostly for the benefit of certain sectors. A practical example is the market organization for agricultural products in the European Union (EU). The justification is often the demand of producers for a minimum income, the supply of the population with products at constant prices and the assurance of a certain degree of self-sufficiency. In addition, the price development on the markets should be protected from excessive fluctuations (levy).

In the health industry:

The regulation of supply and demand through fixed prices and / or quantities with the help of market associations. Market regulations are, for example, a central instrument of EU agricultural policy; they mostly serve to delimit and protect a market from other markets with significantly lower prices.

Market organization is also understood more generally to mean the existing market economy framework of a market. After all, no market can develop completely free of the framework conditions prescribed by the state.

In this sense, the market organization of the health market is heavily regulated by the state, because here in many cases both market access and prices are administered by the state. Examples of regulated market access are the approval of doctors, dentists and pharmacists or pharmacies as well as hospital planning. Nevertheless, competition is increasingly being used as an instrument in this market, with the help of which the quality of the services is to be improved, the transparency of the market increased and a more economical service provision to be encouraged.

To achieve this, it is necessary to partially redesign or redesign the market organization of the healthcare system. For example, the approval and promotion of integrated care (IV), outside of the previous regulations for the uniform and joint conclusion of contracts by health insurance companies, represented such a change in the market organization for German statutory health insurance (GKV).

Finally, the term market regulation also describes the statutes of cities and municipalities, with which the use of marketplaces by marketers is regulated.

Market regulations are an instrument of national and supranational competition and economic policy. They represent a system of measures to regulate markets for certain goods. These include influencing trade and interventions in the internal market (inland shipping policy).

The market regulations for agricultural products in the European Union are of great importance. The agricultural market regulations aim to achieve a balance between supply and demand at reasonable prices for producers and consumers. A basic distinction is made between four forms of market organization (cf. aid, 1997, p. 26):

- External protection and mandatory internal protection: The EU buys the products at the intervention price (= guaranteed minimum price) if the products can no longer be sold at the minimum price on the free market, so that a full price and sales guarantee is given (e.g. grain).

- External protection and optional internal protection: Price and sales guarantees are limited in time and / or quantity (e.g. milk, beef).

- External protection without internal protection: no internal market price support for EU products (e.g. pork, eggs, poultry).

- Neither external nor internal protection: To ensure competitiveness vis-à-vis suppliers on the world market, direct production subsidies are granted (e.g. oil seeds, protein crops).

State-set or spontaneously grown and generally accepted rules of exchange in economies based on the division of labor, which are necessary in order to ensure a balance of interests colliding in exchange. In this respect, a market order is a necessary component of any comprehensive economic order. Different views are compatible with this definition: On the one hand, lviarKioranung aie oesamineir is understood to mean direct state interventions with which market processes and results are to be regulated. On the other hand, market organization refers to all measures that - mostly in the form of state-set framework conditions - are intended to enable and secure competition. Both fundamentally contradicting views have in common that they understand market processes as an event that requires organization; on the other hand, market regulations are interpreted by others as spontaneously evolving norms. This variety of terms is not least an expression of the fact that the market organization has a different meaning depending on the underlying planning order in different economic systems: While with central planning market processes are in principle regulated by the state and only perform auxiliary functions, with decentralized planning only a competitive market organization with a functional one guarantees Price system an optimal fulfillment of the coordination, steering, allocation and distribution functions intended for it. This does not exclude the fact that in reality some markets are organized competitively, even with central planning, or markets that are free of regulation spontaneously emerge, nor does it mean that in the case of decentralized planning, apart from measures promoting and safeguarding competition, there are also no barriers to competition or state regulations on individual markets can be used. Literature: Wo / 1, A., Marktordnung, in: HdWW, Bd. 5, Stuttgart u. A. 1980, p. 127ff.

Previous technical term: market niche strategy | Next technical term: Market Regulation Act

Report this article to the editors as incorrect & mark it for editing