Market organization

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In the context of state or voluntary regulatory policy, market regulation is the regulation of supply , demand or price formation through legal norms for a specific market .

General

In a market economy in particular , supply and demand can develop freely and informally, the principle of market freedom applies . The free play of supply and demand (supplier and consumer sovereignty ) is one of the constitutive elements of a market economy. To the market development for the market participants and the public to make calculable to provide homogeneous structures and ultimately a market failure to prevent markets have given transaction rules are subjected. They should subject the market behavior of market participants, market organization and market transparency to certain norms in order to ensure the functionality of the markets. Because of the conflicting interests of the market participants (suppliers want the highest possible price, buyers want the lowest possible price), market activity can only take place in a controlled manner through fixed rules.

history

The commodity markets of the Middle Ages emerged as so-called presence markets , on which the vendors present in person offered their physical goods for sale to the buyers who were also present . The market participants mutually negotiated the market prices . The Loko contract consisted of in-stock, immediately deliverable, "tangible" goods. The markets had to be public in order to allow fair trade. Specially appointed market supervisors should keep an eye on the activities, warn deviating behavior and be the contact person for those affected. These were municipal employees who monitored compliance with the market regulations and took account of the market gap. Market differences were the taxes paid by traders and citizens to the market rulers.

As early as 1017, a market overseer was mentioned in the city charter of León , he was not only responsible for the market police, he also exercised jurisdiction . The market was - not only in Spain - the commercial center of the city. One of the first German-speaking market regulations is documented in 1190 for the Austrian city of Enns . In the 13th century there was in Nuremberg least 4 monitored Fairs ( Walpurgis market on May 1, Johannis Fair on June 24, Egidimesse on September 1 and the Michael Fair on September 29). The oldest surviving Viennese market regulation from 1250 contained price fixing and quality and weight specifications. Around 1253 there was a Berlin market and trade supervisory authority which, for example, punished incorrect measurements and weights with a fine and criminalized other market offenses (Schupfstuhl, Schimpfsteine). King Ludwig the Bavarian issued a market regulation for Nuremberg in September 1318, which punished market violators with a fine of 1000 marks of pure gold. On the Cologne Alter Markt , there was a cage ( "Käx"), in which were Marktfrevler put on public display since 1424th On July 7, 1568, a certain Sophie von Daelen had to go to the “Käx” as a thief in the morning to “stand ashamed” there.

With regard to the increasing trade in reasonable goods, the stock exchanges developed as a special form of the market. Some of the first commodity exchanges no longer functioned as floor exchanges . The first of its kind in the world was built in Bruges in 1409, it took place in front of the house of the rich merchant family van der Beurse ( Dutch beurs , "wallet" ), the goods were not present. The oldest German commodity exchanges were established in Augsburg and Nuremberg in 1540 ; In 1560 the council issued trading rules for the Nuremberg Stock Exchange and affixed them to a board at the Herrenmarkt as market regulations for all to see.

With the advent of the stock exchanges, the presence disappeared completely. Suppliers and buyers were represented by stock exchange traders , the standardized trading objects ( stocks , bonds ) were stored elsewhere, the stock exchange prices were not negotiated between the suppliers and buyers, but left this to the stockbrokers . This absence of market participants and trading objects required stricter rules. The first stock exchange rules in Prussia were dated February 25, 1739, but were not yet considered stock exchange rules in today's sense. It was not until the new version of July 1805 with a more complete and detailed "Exchange Regulations" that these requirements were met. The Introductory Act to the first German Commercial Code of June 1861 also contained approaches relating to stock exchange supervisory law. The first stock exchange law came into force in January 1897. As a result, there were numerous new regulations, for example for the stock exchange futures business (May 1908), price brokerage (December 1934) or the stock exchange organization (April 1975).

In Economics developed from 1920 two opposing theories of market regulation. Adam Smith was in his book The Wealth of Nations from the March 1776 nor the fact that the market-based pricing mechanism the offer and the demand by the "invisible hand" ( English invisible hand ) bring to compensate. It was not until Arthur Cecil Pigou realized in 1920 that market regulation could prevent market failure. In contrast, George Stigler assumed in 1971 that in the market economy, market regulation emanates from the market participants themselves. The normative theories see market failure as the cause of market regulation and describe the need for regulation ex post . The positive approach advocated by Stigler, on the other hand, shows ex ante the socio-economic process of the emergence of regulatory efforts. Market failure can already be caused by strong asymmetrical information , so that it is not enough to leave market regulation to the market participants alone.

species

A distinction must be made between the total control of the markets in a central administration economy and partial control in sub-areas such as on agricultural markets in the market economy.

  • In central administrative and planned economies , markets are subject to intensive state control . The state reserves the right to intervene in the market , and interventionism is systematic. To this end, it issues strict rules, compliance with which requires extensive control. It intervenes in the autonomy of suppliers and buyers by specifying production quantities and prices and comprehensively steering market mechanisms.
  • The market economy should not be overcome by market organization, but it should be systematically influenced. In market economies, the markets are generally only regulated to an extent that is compatible with the public interest and the common good , or when markets do not function by themselves due to their market structure. For this reason, market regulations are preferably to be found in sectors of the economy that are viewed as unsuitable for internal market pricing. This includes in particular the labor market and the agricultural market . Overall, market regulations are seen as exceptional phenomena that must be justified .

In addition, a distinction is made between a market regulation that a market gives itself (internal market regulation; market statutes like the exchange regulation) and a statutory market regulation prescribed by the state or authorities.

Market regulations today

There are international market regulations in local markets as well as in global markets. They differ in the intensity and instruments of market surveillance.

The aim of the agricultural market regime is state pricing in order to ensure producers and consumers a stable price level with constant supply. The first agricultural market regulations emerged in Germany in 1930 during the Great Depression , which was also an agricultural crisis. The following laws were used to secure prices, such as the Law on Securing Grain Prices of 1933. In England there were extensive quotas with the Marketing Act in 1932 and the Agricultural Marketing Act in 1935 , and in the USA in May 1933 the Agricultural Adjustment Act brought about an alignment of Production and demand. The current agricultural market regime is part of the common agricultural policy in all EU member states and sets prices and quantities (see milk quota ).

The municipalities adopted today at its weekly markets and the local wholesale market to maintain public safety and order, a market order ( Market Regulation , Market statutes ). These markets represent a public institution, for which, according to § 69 GewO, the regulatory authority determines the market item, time, opening times and space for wholesale , weekly , special and annual markets . These market regulations contain restrictions on market participants (e.g. no persons with reportable diseases ), assigned stands, permitted sales facilities and provide for market supervisors.

The most strictly regulated market regulations still exist for stock exchanges and securities trading in general ( Exchange Act , Exchange Regulations , Securities Trading Act ). The financial market , which is often shaken by financial crises , on the other hand, is still a long way from a Europe-wide and systematic financial market order that has so far only been implemented in certain areas.

purpose

The fundamental economic task of market organization is to ensure that market functions are optimally fulfilled. This succeeds by guaranteeing producer and consumer sovereignty through proper competition and by ensuring market prices as a reliable measure of value . However, market regulations can also be used to pursue non-economic purposes, such as the maintenance of farms. Today, market regulations not only serve to organize markets and regulate market behavior, but are also used and expanded by supervisory authorities to regulate the market . The legislature uses undesirable developments to intervene in markets in order to guarantee the market order. In particular, telecommunications and telemedia are subject to intensive regulation by market regulations.

Individual evidence

  1. ^ Gerhard Naegele / Reinhard Bispinck / Klaus Hofemann / Jennifer Neubauer / Gerhard Bäcker, Social Policy and the Social Situation in Germany , Volume 1, 2010, p. 97
  2. ↑ Julius Kähler, World Trade and German Import: A Description of the Production Areas, the World Trade Goods and the Technology of the Import Business , 1926, p. 351
  3. ^ Bettina Emmerich, Avarice and Justice: Economic Thinking in the Early Middle Ages , 2004, p. 97
  4. ↑ Heidelberg Academy of Sciences, German Legal Dictionary , Volume 9, 1992–1996, 1998, p. 253
  5. ↑ Jan A. van Houtte (Ed.), European Economic and Social History in the Middle Ages , Volume 2, 1980, p. 351
  6. ↑ Dagmar Klose, Freedom in the Middle Ages: The Example of the City , 2009, p. 226
  7. ↑ Market fraudsters disrupted the market peace
  8. ^ Tilman Breitkreuz, The Order of the Stock Exchange , 2000, p. 23
  9. ^ Herbert Rosendorfer, German History - An Attempt. Volume 4: The Thirty Years War , 2007, p. 41
  10. ^ Adam Smith, The Welfare of Nations , 1776, p. 400
  11. ↑ Arthur C. Pigou, The Economics of Welfare , 1920, pp. 129 f.
  12. ↑ George Stigler, The Theory of Regulation , in: Bell Journal of Economics and Management Science, vol. 1, 1971, p. 3
  13. ↑ Ludwig G. Poth, Gabler Marketing Concepts from A - Z , 1999, p. 260
  14. ↑ Adolf Stöcker, Preispolitische Lehren, which the market organization of the Reichsnährstand gives us and its system of influencing prices , 1937, p. 13
  15. ↑ Georg Roth, Risk Prevention in the Social Rule of Law , 1968, p. 50
  16. ↑ Patrick Alexander Neuhaus, Regulation in Germany and the USA , 2009, p. 63
  17. ↑ Georg Roth, Risk Prevention in the Social Rule of Law , 1968, p. 50
  18. ^ Adolf Weber / Wilhelm Meinhold / Alfred Kruse, Agrarpolitik , 1951, p. 390
  19. ^ Willi Albers, Handwortbuch der Wirtschaftswwissenschaft , Volume 5, 1980, p. 129 f.