Market Economy

Market Economy is an economic system in which the production, distribution, and pricing of goods and services are determined primarily by supply and demand in a free market. In sociology, the market economy is examined not only as a financial system but also as a social institution that shapes class relations, labor dynamics, and individual behavior. It influences social inequality, consumption patterns, and the commodification of everyday life. Market economies often promote competition, innovation, and consumer choice, but sociologists also critique them for reinforcing systemic inequalities, prioritizing profit over social welfare, and weakening communal bonds. The rise of global capitalism and neoliberal policies has intensified the influence of market economies on social life. Sociological analysis of market economies focuses on how economic systems intersect with power, identity, and culture, affecting access to resources and opportunities.