Answer to Question #132551 in Economics for Sofia W Sallee

Question

What role do markets play in conducting exchanges between private parties?

Answer 1

Different markets have different specifics, but all of them perform common basic important functions:

1) Trade accelerator. A lot of different production and services concentrated in one place. It makes the trade easier and creates synergy effect.

2) Safety. The markets are public and open places. Everything what happen here almost impossible to hide. Besides, 

formal contracts protect participants from fraud.