Definitions for market failure
mar·ket fail·ure

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1. Market failure

   Market failure is a concept within economic theory describing when the allocation of goods and services by a free market is not efficient. That is, there exists another conceivable outcome where a market participant may be made better-off without making someone else worse-off. Market failures can be viewed as scenarios where individuals' pursuit of pure self-interest leads to results that are not efficient – that can be improved upon from the societal point-of-view. The first known use of the term by economists was in 1958, but the concept has been traced back to the Victorian philosopher Henry Sidgwick. Market failures are often associated with time-inconsistent preferences, information asymmetries, non-competitive markets, principal–agent problems, externalities, or public goods. The existence of a market failure is often the reason for government intervention in a particular market. Economists, especially microeconomists, are often concerned with the causes of market failure and possible means of correction. Such analysis plays an important role in many types of public policy decisions and studies. However, some types of government policy interventions, such as taxes, subsidies, bailouts, wage and price controls, and regulations, including attempts to correct market failure, may also lead to an inefficient allocation of resources, sometimes called government failure. Thus, there is sometimes a choice between imperfect outcomes, i.e. imperfect market outcomes with or without government interventions. But either way, if a market failure exists the outcome is not Pareto efficient. Mainstream neoclassical and Keynesian economists believe that it may be possible for a government to improve the inefficient market outcome, while several heterodox schools of thought disagree with this.

How to pronounce market failure?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say market failure in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of market failure in Chaldean Numerology is: 8

2. Pythagorean Numerology

   The numerical value of market failure in Pythagorean Numerology is: 5

Examples of market failure in a Sentence

1. Amitabh Chandra:

   Covid-19 illustrates a market failure in how we build vaccines, we haven't given firms the correct incentives to make vaccines before a pandemic. Vaccines are very hard to test before the pandemic hits.

2. The BoE:

   The PRA considers this lack of capabilities to be a market failure, posing risks to the PRA’s safety and soundness objective, and has therefore decided to clarify its expectations in this area, for the largest firms, the destruction of trading book asset value in a disorderly wind-down risks impacting UK financial stability, due to the scale and interconnectivity of their trading activities.

References

1. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=market failure