market failure
Market failure occurs when the free market system is unable to efficiently allocate resources, resulting in an inefficient distribution of goods, services, or resources.
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Related Concepts (21)
- adverse selection
- demerit goods
- externalities
- government regulations
- imperfect competition
- inadequate market competition
- income inequality
- incomplete markets
- inefficient allocation of resources
- information asymmetry
- lack of property rights
- market distortion
- monopoly power
- moral hazard
- natural monopolies
- price controls
- principal-agent problem
- public goods
- public goods provision
- tragedy of the commons
- uncertainty and risk