A failure of arms-length markets to efficiently complete the production of a good or service. In the eclectic paradigm, the multinational corporation's market internalization advantages take advantage of market failure.
this occurs when market prices are not equal to the social opportunity cost of resources. External effects or externalities are evidence of market failure. [GBA
The situation where market forces do not lead to an efficient allocation of resources.
the situation in which a market economy fails to attain economic efficiency
inability of markets to allocate resources efficiently
The inability of arm's length markets to deliverer goods or services. A multinational corporation's market internalization advantages may take advantage of market failure.
the inability of markets to reflect the full social costs or benefits of a good, service, or state of the world. Therefore, markets will not result in the most efficient or beneficial allocation of resources.
when a market fails to achieve economic efficiency.
the failure of certain markets to provide a socially efficient allocation of resources.
any situation in which the market does not lead to an efficient economic outcome and in which there is a potential role for government.
the failure of the market system to achieve economic and technical efficiency
a case in which a market fails to "efficiently" provide or allocate goods and services (for example, a failure to allocate goods in way some see as socially or morally preferable)
an imperfection in the market mechanism that prevents optimal outcomes
The inability of an unregulated market to achieve allocative effiency in all circumstances. The main types of market failure are: monopoly, externalities, public goods and information asymmetries.
A situation where barriers prevent the normal and efficient operation of a local economy. These may be information barriers, where local people don’t know about job vacancies nearby, or the negative impact which high crime levels have on firms and workers locating to a particular area.
(p. 4) A market failure occurs when something interferes with a market. For example, externalities are a type of market failure because the costs are not fully included in the market, and so the market does not work as expected. To a true Chicago-school economist, a market failure is the only thing that can keep the invisible hand from optimizing social welfare.
A divergence between the market outcome, without intervention, and the economically efficient solution.
the condition that occurs when markets cannot, or do not, work to allocate resources efficiently to produce goods and services through the interaction of supply and demand.
The concept that markets do not reflect the societal costs of all economic activity and, in particular, the economic costs imposed on third parties.
a situation in which the market fails in its job of promoting efficiency
when market forces encourage resource use and allocation inconsistent with prescribed social objectives.
The inability of a system of market production to provide certain goods either at all or at the optimal level because of imperfections in the market mechanism; or the inability of a system of markets to fully account for all costs of supplying outputs. Market failure results in the overproduction of goods and services having negative external effects and the underproduction of goods and services having positive external effects. Market failure occurs for different reasons, for example, inadequate information, inadequate capacity, regulation of the movement of labor and capital, or rent-seeking behavior by producers. The existence of market failure provides a case for collective or government action directed at improving efficiency.
Usually, the give-and-take of the marketplace tends to produce efficient allocation of goods and services. When it does not, this is called "market failure". Two important types of market failure are brought about by monopolies and externalities.
Market failure occurs when the market price of a good does not include the costs or benefits of the externality (a harmful or beneficial side effect that occurs in the production, consumption, or distribution of a particular good). Producers or consumers may have little incentive to alter activities that contribute to pollution, for example, because the external costs of pollution do not enter their private costs of production. Often, government policies in the form of regulations (such as standards, bans, and restrictions on input use) and incentive-based mechanisms (such as taxes, subsidies, and marketable permits) are implemented as corrective measures.
A state in which the market does not use resources efficiently to achieve the greatest possible consumer satisfaction.
Market failure is a term used to describe a situation in which markets do not efficiently allocate goods and services. To economists, the term would normally be applied to situations where the inefficiency is particularly dramatic, or when it is suggested that non-market institutions (such as public policing and firefighting) would be more efficient and welfare-enhancing than market solutions.