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4 Cards in this Set
- Front
- Back
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Types of market failure |
Information gaps Underprovision of public goods Externalities |
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What is the free rider problem |
Public good are non-rivalrous and non-excludable. If private goods provide public goods there will be an issue that if they sell this good to one person other people will also benefit from this purchase and will not buy from the private firms. |
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Government failure |
Unintended Consequences Distortion of price signals Administrative costs Asymmetric information |
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Types of gov intervention |
Taxes Subsidies Maximum price Minimum price Tradable pollution permits Provision of information Regulations |
