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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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WABI-SABI

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The Failure of Market Failure

How about government failure?

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Which process has better built-in mechanisms to provide the knowledge and incentives necessary to notice imperfections and improve on them?

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Uneven Information Causes Market Failure?

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

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Regulations Improve the Free Market?

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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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September 2014

For centuries, hierarchical models dominated human organizations. Kings, warlords, and emperors could rally groups--but also oppress them. Non-hierarchical forms of organization, though, are increasingly defining our lives. It's no secret how this shift has benefited out social lives, including dating, and it's becoming more commonplace even in the corporate world. But it has also now come even to organizations bent on domination rather than human flourishing, as the Islamic State shows. If even destructive groups rely on this form of entrepreneurial organization, then hierarchy's time could truly be coming to an end.
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