In common usage the word market designates a place where certain things are bought and sold. But when we talk about the word market in economics, we extend our concept of market well beyond the idea of a single place to which the householder goes to buy something. For our present purpose, we define a market as an area over which buyers and sellers negotiate the exchange of a well-defined commodity. For a single market to exist it must be possible for buyers and sellers to communicate with each other and to make meaningful deals other the whole market.
Several economists have attempted to define the term market as used in economics. Some of them are as under: –
According to Prof. Chapman: “The term market refers not necessarily to a place but always to a commodity and the buyers and sellers who are in direct competition with one another.”
According to Curnot: “Economists understand by the term market not any particular market-place in which things are bought and sold, but the whole of any region in which buyers and sellers are in such free intercourse with one another that the price of the same goods tends to equality easily and quickly.”
In simple words, the term market refers to a structure in which the buyers and sellers of the commodity remain in close contact.