Samuel Mason Azanar
market faliure
1.
what is
market faliure?
The market helps to allocate scarce resources, however there is
times where the markets lead to overproduction of too many or
too few goods, when this happens, we call it a partial market
faliure. Instead when there is no market to poduce a good or
service, it is called a complete market faliure.
2.
types of market faliures
1.
Externalities
2.
Under-provision of
public goods
3.
information gap
4.
Moral hazard
5.
Speculation and market
bubbles
3.
1.
Externalities
2.
3.
Externalities are spellovers on
third parties, these can be
positive or negative.
Positive externalities are those
that have a positive spillover
on the third parties, like
vaccination.
The externalities that have a
negative spillover on the third
parties are considered
negative externalities,
ssmoking is an example.
7.
What is it?
it’s the under underproduction of a
public good.
examples
When we had the pandemic because of
COVID-19, the market failed to product
enough hospitals for the infected people.
Underprovision of
public goods
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