Market participant

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The term market participant is used in United States constitutional law to describe a U.S. State 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 (1980), in which the Court upheld South Dakota's right to give South Dakota residents preferential treatment in the purchase of cement produced at a cement plant owned and operated by the state.

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 non-marketable services, such as welfare, police protection, and primary education would violate the Privileges and Immunities Clause.