Encyclopedia of Law and Economics

2019 Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Market Failure: Analysis

  • José Luis Gómez-BarrosoEmail author
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7753-2_619

Abstract

Given that there is no agreement on the procedure by which economic efficiency should be measured, a closed catalogue of market failures cannot be talked about. There is however a reasonable agreement in economic literature on the identification of up to a total of five reasons for the existence of market failures: public goods, externalities, imperfect competition, information failures, and incomplete markets. There are three other situations that some authors also include in the list of market failures: merit goods, an unbalanced macroeconomic situation, and economic situations that assault criteria of equity.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Dpto. Economía Aplicada e Historia EconómicaUNED (Universidad Nacional de Educación a Distancia)MadridSpain