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10-8 recitation notes

10-8 recitation notes - • Property rights are clearly...

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Reasons for market failures Externalities- things that affect other parties Inequities Asymmetric information- a lack of info Public goods- air, grass, etc Instability- inflation and stuff Monopoly Coase Theorem- private individuals can resolve inefficiencies by themselves without government intervention…conditions of such:
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Unformatted text preview: • Property rights are clearly identified • Number of parties affected by events minimal • Judicial costs are low Ways to solve market problems • Subsidies • Taxes • Merger • Moral decisions • Permit trading • Private solution • Charities • Command-control by government • Pollution permits...
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