Report

Market failures and what may be done about them

Published by
Nathan Associates

A two-page list of market failures, their possible consequences, and the corrective action required.

Market failures considered:

  • natural monopoly
  • market power
  • unequal access to information
  • indivisibility
  • incomplete markets
  • coordination failures and hierarchical supply chains that are not accessible
  • high cost of establishing/enforcing agreements
  • external effects
  • public goods