Ec 7100-Tansey
July 17, 2016
ASSIGNMENT 3 (Due MARCH 3, 2006) MEDIA: Market Failure.
For each of four DIFFERENT types of market failure (use the “market failure and
government intervention” handout for the complete list of market failures), find an example
from the media (articles must be dated later than the beginning of the semester) which
mentions the market failure, a form of government intervention to correct the market failure,
and an example of government failure. For each of the four articles:
1.
Underline and color in bold blue letters(no more than one sentence) evidence of
the market failure.
2.
Circle and show in bold, red letters (no more than one example) of the
government intervention designed to correct the market failure.
3.
[Place brackets and show in bold, green letters] an example of the government
failure that results from the government intervention. (For discussion of government
failure you can get more information from the previously mentioned handout)
4.
In a page or less for each type of market failure, subjectively weigh the costs of
benefits of government involvement to correct the market failure and make a policy
recommendation about the most desirable form of government involvement (or noninvolvement (no expletives)).
5.
Describe which kind of study you are performing in your analysis (eg. Regulatory
impact, fiscal impact, cost benefit, cost effectiveness) and justify your answer.
Enter the citation (page, date, title of news source) below each of the articles. You
should have four articles in all- each representing a different market failure.