market mechanism


The process by which a market solves a problem allocating resources, especially that of deciding how much of a good or service should be produced, but other such problems as well. The market mechanism is an alternative, for example, to having such decisions made by government.

Use market mechanism in a sentence

Everyone panics when the stock market falls below a certain number, I don't worry about it because I think market mechanism will take care of it.

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The snack factory had a market mechanism in place for their production line. The factory manager was responsible for maintaining the details of their reports.

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The desire for runaway profits in coal-fired industries can produce harmful negative externalities and, at a certain point, must justify itself to the market mechanism of public opinion.

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