Feb 13 Mkt Failures.pdf - Exam#1 th 27 Mon February 7:00...

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Exam #1 Mon., February 27 th 7:00 – 9:00 p.m. Details later this week
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Market Failures 2
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market failure ? invisible hand produces disappoin1ng or embarrassing results for society 3
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Categories of Market Failure Market Power Public Goods Equity Externali=es 4
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Market Power The invisible hand works best when markets are compe==ve 5
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Imagine we are neighbors on a private road …. 6
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Public Goods Non-exclusive consump=on 7
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Public Goods: Remedies Non-market alloca1on mechanism One op1on: collect taxes to fund them Another approach: private membership 8
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Equity
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  • Spring '08
  • dolenc
  • Macroeconomics, Market failure, Externality, Public goods

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