Market Failures Taxonomy
Four major sources of market failure with policy remedies.
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mindmap
root((Market failures))
Externalities
Negative — pollution
Positive — vaccination
Remedy — Pigouvian tax / subsidy
Public goods
Non-excludable
Non-rival
Remedy — public provision
Asymmetric information
Adverse selection
Moral hazard
Remedy — signalling / screening
Market power
Monopoly
Oligopoly collusion
Remedy — antitrust / regulation