Definitions for "Market failure"
A situation in which an unregulated market produces an inefficient outcome.
Market failure occurs when a freely operating market does not bring about the best allocation of resources.
Failure of the market system to attain hypothetically ideal allocative efficiency. This means that potential gain exists that (for some reason) has not been captured.
A condition that arises when unrestrained operation of markets yields socially undesirable results.
Occurs when free markets takeinto account the private benefit of the production to consumers and producers, but don't consider social costs such as damage to the environment
Any market imperfection, but especially the complete absence of a market due to incomplete or asymmetric information.