Difference between revisions of "Market failure"
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| − | [[Market failure]] is a situation in which the market on its own fails to allocate resources efficiently in a way that balances social costs and benefits; externalities are one example of a market failure. | + | [[Market failure]] is a situation in which the [[market]] on its own fails to allocate resources efficiently in a way that balances social costs and benefits; externalities are one example of a market failure. |
==Definition== | ==Definition== | ||
According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | ||
| − | :[[Market failure]]. A situation in which the market on its own fails to allocate resources efficiently in a way that balances social costs and benefits; externalities are one example of a market failure. | + | :[[Market failure]]. A situation in which the [[market]] on its own fails to allocate resources efficiently in a way that balances social costs and benefits; externalities are one example of a market failure. |
[[Category: Economics]][[Category: Articles]] | [[Category: Economics]][[Category: Articles]] | ||
Latest revision as of 09:25, 2 June 2020
Market failure is a situation in which the market on its own fails to allocate resources efficiently in a way that balances social costs and benefits; externalities are one example of a market failure.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Market failure. A situation in which the market on its own fails to allocate resources efficiently in a way that balances social costs and benefits; externalities are one example of a market failure.
