Print2.3 Creating and Controlling Markets
Market formation
The conditions under which new markets form (and, fail to form) are categorized either as spontaneous market making or organized market making.
Pay particular attention to Table 7.1 (p. 163), which describe the phases of market making. Many of our renewable energy technologies are either in the orientation or contraction phase, and have yet to fully arrive at cohesion. Solar, for example, has gone through a significant contraction phase (from ~2008-2014) The solar market has reached a relative level of cohesion (ordered market), but new technologies can readily bring about change (per unit cost, as well as in other considerations).
What is important to take away from the section on market formation is the distinguishing features of different phases of market formation: development, upheaval, and renewal.