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Market Failure

MARCH 11, 2013

Occurs when the outcome in a free market is not efficient, meaning that there is another possible outcome where scarce resources are allocated in a way that creates greater net benefits. Many economists and politicians view a market failure as grounds for economic intervention by the government.

Steve Horwitz - Regulation and Intervention

Mark Hendrickson - The Truth About Monopoly and Antitrust

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How about government failure?

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Market-Failure Arguments Ignore Incentives for Market Participants to Overcome Assymetric Information

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Despite its remarkable record the free market remains for many people a tough sell. Even those who on balance support free enterprise hesitate to give unregulated market forces their full endorsement.

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Enron and Argentina Are Examples of Market Failure?

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