Abstract
It is common knowledge in economic science that a free, non-regulated market economy does, generally speaking, fail to allocate good and services efficiently and does not result in a fair distribution between individuals due to market failures. Some of the most important market failures are related to the existence of public goods and externalities. To secure a society’s overall welfare, there is a need for regulation and interventions to correct for market failures.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Monopoly and imperfect competition are other important market failures and in almost all countries regulated by law and by public competition authorities.
References
Andersen, P. 1983. ‘On the Rent of Fishing Grounds’: A Translation of Jens Warming’s 1911 Article With an Introduction. History of Political Economy 15: 391–396.
———. 2007. Research, Global Public Goods and Welfare. In Towards New Global Strategies: Public Goods and Human Rights, ed. E.A. Andersen and B. Lindsnaes, 335–343. Lieden: Martinus Nijhoff Publishers.
Andersen, E.A., P. Andersen, and B. Lindsnaes. 2007. Problems and Potentials in the Application of Global Public Goods. In Towards New Global Strategies: Public Goods and Human Rights, ed. E.A. Andersen and B. Lindsnaes, 453–465. Lieden: Martinus Nijhoff Publishers.
Becker, G.S. 1968. Crime and Punishment: An Economic Approach. Journal of Political Economy 76: 169–217.
Buchanan, J.M. 1965. An Economic Theory of Clubs. Economica 32: 1–14.
Coase, R. 1960. The Problem of Social Costs. The Journal of Law and Economics 3: 1–44.
Corner, R., and T. Sandler. 1996. The Theory of Externalities, Public Goods and Club Goods. Cambridge: Cambridge University Press.
Gibbons, R. 1992. Game Theory for Applied Economists. Princeton: Princeton University Press.
Hardin, G. 1968. The Tragedy of the Commons. Science 162: 1243–1248.
Møller, B. 2007. Peace as a Global Public Good. In Towards New Global Strategies: Public Goods and Human Rights, ed. E.A. Andersen and B. Lindsnaes, 115–158. Lieden: Martinus Nijhoff Publishers.
OECD. 2003. The Sources of Economic Growth in OECD Countries. Paris: OECD.
Ostrom, E. 1990. Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge: Cambridge University Press.
Perman, R., Y. Ma, M. Common, D. Maddison, and J. McGilvray. 2011. Natural Resource and Environmental Economics. London: Pearson.
Samuelson, P.A. 1954. The Pure Theory of Public Expenditures. Review of Economics and Statistic 36: 483–485.
Varian, H.R. 2014. Intermediate Microeconomics. New York: Norton and Company.
Warming, Jens. 1911. Om grundrente af fiskegrunde. Nationaløkonomisk Tidsskrift 49: 499–505.
Weitzman, M.L. 1998. The Noah’s Ark Problem. Econometrica 66: 1279–1298.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Andersen, P. (2023). Market Failures and What to Do About It?. In: Kærgård, N. (eds) Market, Ethics and Religion. Ethical Economy, vol 62. Springer, Cham. https://doi.org/10.1007/978-3-031-08462-1_3
Download citation
DOI: https://doi.org/10.1007/978-3-031-08462-1_3
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-08461-4
Online ISBN: 978-3-031-08462-1
eBook Packages: Religion and PhilosophyPhilosophy and Religion (R0)