market failure
- Created by: courtroberts
- Created on: 20-03-17 10:37
View mindmap
- Market Failure
- public goods
- non -excludable
- non - rivalry
- Free Rider Problem
- public goods are provided for all - can't be withheld
- e.g. streetlights
- e.g. National defence
- asymmetric information
- when one party in a transaction has more information than another
- e.g. car sales
- government intervention
- internalising the external cost
- tradable permits
- regulation
- indirect taxes
- property rights
- subisidies
- Information provision
- educating on the information given
- Min/Max prices
- minimum
- maximum
- helps maintain farmers incomes
- prevents too high prices for consumers
- internalising the external cost
- government failure
- high admin costs
- information gaps
- e.g. rent controls in housing market
- public goods
- all public goods are merit goods but not vice versa
Comments
No comments have yet been made