Market economy

determined supply and demand, and prices of goods and services are determined in a free price system.The major defining characteristic of a market economy is that investment decisions and the allocation of  producer goods are mainly made by cooperative negotiation through markets.This is contrasted with a so-called planned economy,, where investment and production decisions are embodied in a plan of production established by a state or other body with control over economic resources.

of the means of production. A market economy can and often does consist of a mix of various types of cooperatives, collectives or autonomous state agencies that acquire and exchange capital goods in capital markets. These all utilize a market determined free price system to allocate capital goods and labor. There are many variations of market socialism, some of which involve employee-owned enterprisesbased on self-management; as well as models that involve public ownership of the means of production where capital goods are allocated through markets.

or entirely privately owned and operated for a profit, structured on the process of capital accumulation. In general, in capitalist systems investment, distribution, income, and prices are determined by markets, whether regulated or unregulated.

goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy. It typically entails support for highly competitive markets, private ownership of productive enterprises. Laissez-faire is a more extensive form of free-market economy where the role of the state is limited to protecting property rights.