A market in any one of a variety of different systems, institutions, procedures, social relations or infrastructures whereby persons trade, and goods and services are exchanged, forming part of the economy. It is an arrangement that allows buyers and sellers to exchange things.
Markets vary in size, range, geographical scale, locations, types and varieties of human communities, as well as in the types of goods and services traded.
Some Examples include, local farmer's market held in town squares, Shopping Centres or shopping malls, Financial Markets such as International currencies or commodity markets or Equity stock markets, legally centred markets such as pollution permits, and illegal markets such as black markets for illicit drugs or weapons.
In mainstream economics, the concept of market is any structure that allows buyers and sellers to exchange any type of goods, services and information. The exchange of goods or services for money is called a transaction.
Thus a market has four basic components - Consumers, Sellers, Commodity & Price.
The market facilitates trade and enables the distribution and allocation of resources in a society. Markets allow any tradable item to be evaluated and priced. A market emerges more or less spontaneously or is constructed deliberately by human interactions in order to enable the exchange of rights or ownership of goods and services.
Market participants consist of all the buyers and sellers of a good who influence the price. Market prices may be distorted by a seller or sellers with monopoly power, or a buyer with monopsony power. Such price distortions can have an adverse affect on market participant's welfare and reduce he efficiency of market outcomes.
Also the level of organisation or negotiation power of buyers, markedly affects the functioning of the market.