Difference between revisions of "Market failure"
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| − | '''Market failure''' is the inability of an [[economy]] or market to allocate its resources efficiently. Often the failure is due to an externality, such as | + | '''Market failure''' is the inability of an [[economy]] or market to allocate its resources efficiently. Often the failure is due to an externality, such as pollution or increased insurance costs due to risky behavior. |
[[category:economics]] | [[category:economics]] | ||
Revision as of 23:58, February 11, 2011
Market failure is the inability of an economy or market to allocate its resources efficiently. Often the failure is due to an externality, such as pollution or increased insurance costs due to risky behavior.