The Market Triple as a New Tool in Economics

Abstract

Many economists argue that we need a reappraisal of some of the dominant ideas in economic thought for a much better understanding of how modern (market) economy works – and why in key ways it now doesn’t. Following this path of reasoning, I define the concept of a market as general as possible and claim that each market beside its own demand and supply has its own organizer, who regulates its activities. These three market actors are connected by formal and/or informal relations specific for each market, what can be pictured as a triangle, called the market triple.
To demonstrate usefulness of the market triple concept, an analysis of labour market in both its present stage and its historical development is presented together with two main conclusions. First, today, labour market is the most over-regulated market and the demand for routine labour is shrinking as an unavoidable result of socio-economic development, while the demand for creative work is rising. Therefore, the full employment among routine workers is impossible. Second, among all markets, the labour market has passed the most revolutionary changes, what can be shown by an evolution of its market triple.
Similar applications of the market triple to the case of money market and goods market are briefly discussed. Finally, the market triple concept is used in the marketplace design for kidney exchange as an example of a no commodity market, where money (price) plays no role in establishing equilibrium between demand and supply. In conclusion, this new approach to an economic analysis is compared with the classical one.