The rule of law and sound property rights are essential components in any market. Furthermore, markets operate best within a set of framework conditions, which determine what behaviour is acceptable, and how the market should operate. These are defined by governments on behalf of society. Effective markets need to provide price signals that promote resource efficiency. However, many markets have subsidies or perverse incentives that work in the opposite direction.
Markets also require information if they are to function.
Information, together with raised awareness and education of consumers will allow them to make more informed choices as to how they best improve their lives, and the wider implications of their choices. Many companies are looking at ways to improve the provision of information in the marketplace. There is a dilemma over providing information, however. Some people want simple information to help them make informed choices. Others need greater detail about both the products and the company producing them.