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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