We conclude the market failure series by talking about what to do when you have goals besides allocative efficiency.
Unfortunately correcting market failures is an exercise in using one imperfect tool to fix the imperfections in another.
Thinking is hard.
What you don’t know can hurt everyone.
Why can’t we all just get along?
What happens when a small number of producers or consumers starts to gain control over the price system?
Economic decision-making becomes a lot more complicated when your decisions affect 3rd parties.
To understand what a market failure is, you first need to understand the market successes.
In which I outline an eight-part series on how markets can fail, and what to do about it.