Market-based mechanisms are tools or strategies that utilize market signals and economic incentives to encourage certain behaviors or outcomes, particularly in the context of environmental policy and negotiations. These mechanisms can promote efficiency and innovation by allowing market participants to respond to price changes, thereby optimizing resource allocation. In high-stakes negotiations, understanding these mechanisms can be crucial for developing effective strategies that leverage economic principles to achieve desired results.
congrats on reading the definition of Market-Based Mechanisms. now let's actually learn it.