McMillan states that the defining characteristics of a market involve the voluntary exchange of goods and services. Each party is acting in their own self interest, and will only agree to a contract they believe is in those interests. McMillan states that a market transaction is defined as "an exchange that is voluntary: each party can veto it, and (subject to the rules of the marketplace) each feely agrees to the terms." This limited definition refines the definition to the most basic transactions that arise between two interested parties.
McMillan points to the differing opinions of the market system; Some people argue that markets exploit the poor and increase poverty, yet others see markets as the answer of how to be prosperous. Th truth lies in both of these viewpoints. A market economy, particularly an unregulated one, does provide pathways for exploitation, but also provides pathways out of the poverty that was caused by the market itself. Some people distrust the market, because they have fallen on the hard side of deals, found themselves or people they care about at the mercy of others in the market. Others distrust the government because they feel that without regulation, they could be more prosperous, perhaps at the expense of others.
Rules are important to maintaining a market, ensuring that the market does not take advantage of a majority to help a minority. Rules are required to protect consumers: quality and safety issues, information to educate on risks of investments. Rules are also required to protect producers: intellectual property such as patents and trademarks, and antitrust laws encourage competition.
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