Market participant
Encyclopedia
The term market participant is used in United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 constitutional law
Constitutional law
Constitutional law is the body of law which defines the relationship of different entities within a state, namely, the executive, the legislature and the judiciary....

 to describe a U.S. State
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...

 which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. This principle was established by the United States Supreme Court in Reeves Inc. v. Stake,
447 U.S. 429
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...

 (1980), in which the Court upheld South Dakota
South Dakota
South Dakota is a state located in the Midwestern region of the United States. It is named after the Lakota and Dakota Sioux American Indian tribes. Once a part of Dakota Territory, South Dakota became a state on November 2, 1889. The state has an area of and an estimated population of just over...

's right to give South Dakota residents preferential treatment in the purchase of cement
Cement
In the most general sense of the word, a cement is a binder, a substance that sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term opus caementicium to describe masonry resembling modern concrete that was made from crushed...

 produced at a cement plant owned and operated by the state.

“Nothing in the purposes animating the Commerce Clause prohibits a State, in the absence of congressional action, from participating in the market and exercising the right to favor its own citizens over others.” Hughes v. Alexandria Scrap Corp., 426 U.S. 794 (1976).

In Reeves, 447 U.S. 429 (1980), the Court relied upon “the long recognized right of trader or manufacturer, engaged in an entirely private business, freely to exercise his own independent discretion as to parties with whom he will deal.”

“There are some limits on a state or local government’s ability to impose restrictions that reach beyond the immediate parties with which the government transacts business.” White v. Massachusetts Council of Construction Employers, Inc., 460 U.S. 204 (1983).

“The limit on the Market Participant Exception is that it allows a State to impose burdens on commerce within the market in which it is a participant but allows it to go no further. The State may not impose conditions, whether by statute, regulation, or contract, that have a substantial regulatory effect outside of that particular market.” South-Central Timber Development, Inc. v. Wunnicke, 467 U.S. 82 (1984).
“Downstream restrictions have a greater regulatory effect than do limitations on the immediate transaction. The State may not avail itself of the market-participant doctrine to immunize its downstream regulation of a market it is not actually a participant.” Id.

The most ubiquitous example of a service offered by the individual states is the operation of public universities. Because the provision of higher education is deemed not to be a fundamental right, the individual states that have universities may charge higher tuition to out-of-state students.

By contrast, discriminatory practices in the provision of essential public services, such as welfare, police
Police
The police is a personification of the state designated to put in practice the enforced law, protect property and reduce civil disorder in civilian matters. Their powers include the legitimized use of force...

 protection, and primary education
Primary education
A primary school is an institution in which children receive the first stage of compulsory education known as primary or elementary education. Primary school is the preferred term in the United Kingdom and many Commonwealth Nations, and in most publications of the United Nations Educational,...

, would violate the Privileges and Immunities Clause
Privileges and Immunities Clause
The Privileges and Immunities Clause prevents a state from treating citizens of other states in a discriminatory manner...

, and discriminatory practices when the state is acting as regulator rather than market participant would violate the dormant commerce clause
Dormant Commerce Clause
The "Dormant" Commerce Clause, also known as the "Negative" Commerce Clause, is a legal doctrine that courts in the United States have inferred from the Commerce Clause in Article I of the United States Constitution...

.

Investing

In finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...

, market participants are traders who buy and sell securities or commodities in a structured market.
The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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