Black market refers to any economic activity that is illegal, unrecorded, unreported, or in violation of the law. Other terms used to describe this illegal activity include underground, shadow, subterranean, informal, parallel, or irregular economy. Another related term is the gray market, but this describes goods that are sold and not manufactured under patent, trademark, copyright, or [Page 271]exclusive distribution laws. The term black market derives its name from economic activities conducted in the dark or shadow, since it is hidden from the law. This entry examines the economic implications of black markets and the history of the black market economy, as well as ethical and practical concerns related to the black market.

Black markets exist so that individuals may evade taxes or restrictive government controls, ...