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Market Mechanism

Type

Decentralized System

Shapes

EconomiesSocietiesGlobal Trade

Advantages

Economic Development • Innovation • Efficient Resource Allocation

Disadvantages

Market Failures • Income Inequality • Externalities

Government Role

Supporting Role and Regulation

Influencing Entities

Consumers • Producers • Middlemen • Government

Operating Environment

Mesh Network

Distinct Characteristics

Informational Inefficiencies • Dynamism • Self-Organization

Market Mechanism