Encyclopedia of Law and Economics

Living Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Market Failure (Analysis)

  • José Luis Gómez-BarrosoEmail author
Living reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7883-6_619-1


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.


Public Good Market Structure Market Failure Network Externality Imperfect Competition 
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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

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