{"id":1841,"date":"2019-02-18T14:40:58","date_gmt":"2019-02-18T04:40:58","guid":{"rendered":"http:\/\/petaguy.info\/blog\/?post_type=glossary&#038;p=1841"},"modified":"2019-02-18T14:41:24","modified_gmt":"2019-02-18T04:41:24","slug":"market-failure","status":"publish","type":"glossary","link":"http:\/\/petaguy.info\/blog\/glossary\/market-failure","title":{"rendered":"Market Failure"},"content":{"rendered":"<p>In economics, <b>market failure<\/b> is a situation in which the allocation of goods and services by a free market is not efficient, often leading to a net <a class=\"mw-redirect\" title=\"Social welfare\" href=\"https:\/\/en.wikipedia.org\/wiki\/Social_welfare\">social welfare<\/a> loss. Market failures can be viewed as scenarios where individuals&#8217; pursuit of pure self-interest leads to results that are not efficient \u2013 that can be improved upon from the societal point of view. The first known use of the term by economists was in 1958, but the concept has been traced back to the Victorian philosopher <a title=\"Henry Sidgwick\" href=\"https:\/\/en.wikipedia.org\/wiki\/Henry_Sidgwick\">Henry Sidgwick<\/a>. Market failures are often associated with <a class=\"mw-redirect\" title=\"Time-inconsistent preferences\" href=\"https:\/\/en.wikipedia.org\/wiki\/Time-inconsistent_preferences\">time-inconsistent preferences<\/a>,<sup id=\"cite_ref-5\" class=\"reference\"><\/sup> <a title=\"Information asymmetry\" href=\"https:\/\/en.wikipedia.org\/wiki\/Information_asymmetry\">information asymmetries<\/a>, <a title=\"Market structure\" href=\"https:\/\/en.wikipedia.org\/wiki\/Market_structure\">non-competitive markets<\/a>, <a title=\"Principal\u2013agent problem\" href=\"https:\/\/en.wikipedia.org\/wiki\/Principal%E2%80%93agent_problem\">principal\u2013agent problems<\/a>, or <a class=\"mw-redirect\" title=\"Externalities\" href=\"https:\/\/en.wikipedia.org\/wiki\/Externalities\">externalities<\/a>.<\/p>\n<div style=text-align:right;><\/div>","protected":false},"excerpt":{"rendered":"<p>In economics, market failure is a situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss. <a class=\"more-link\" href=\"http:\/\/petaguy.info\/blog\/glossary\/market-failure\">Continue Reading &rarr;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"template":"","meta":{"_uag_custom_page_level_css":"","_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"glossary-cat":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","ab-block-post-grid-landscape":"","ab-block-post-grid-square":"","slider":"","featured":"","small-featured":""},"post_excerpt_stackable_v2":"<p>In economics, market failure is a situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss. Market failures can be viewed as scenarios where individuals&#8217; pursuit of pure self-interest leads to results that are not efficient \u2013 that can be improved upon from the societal point of view. The first known use of the term by economists was in 1958, but the concept has been traced back to the Victorian philosopher Henry Sidgwick. Market failures are often associated with time-inconsistent preferences, information asymmetries, non-competitive markets, principal\u2013agent&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Peta Guy","url":"http:\/\/petaguy.info\/blog\/author\/peta"},"comments_num_v2":"0 comments","uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"ab-block-post-grid-landscape":false,"ab-block-post-grid-square":false,"slider":false,"featured":false,"small-featured":false},"uagb_author_info":{"display_name":"Peta Guy","author_link":"http:\/\/petaguy.info\/blog\/author\/peta"},"uagb_comment_info":0,"uagb_excerpt":"In economics, market failure is a situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss. Continue Reading &rarr;","_links":{"self":[{"href":"http:\/\/petaguy.info\/blog\/wp-json\/wp\/v2\/glossary\/1841"}],"collection":[{"href":"http:\/\/petaguy.info\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"http:\/\/petaguy.info\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"http:\/\/petaguy.info\/blog\/wp-json\/wp\/v2\/users\/1"}],"version-history":[{"count":1,"href":"http:\/\/petaguy.info\/blog\/wp-json\/wp\/v2\/glossary\/1841\/revisions"}],"predecessor-version":[{"id":1842,"href":"http:\/\/petaguy.info\/blog\/wp-json\/wp\/v2\/glossary\/1841\/revisions\/1842"}],"wp:attachment":[{"href":"http:\/\/petaguy.info\/blog\/wp-json\/wp\/v2\/media?parent=1841"}],"wp:term":[{"taxonomy":"glossary-cat","embeddable":true,"href":"http:\/\/petaguy.info\/blog\/wp-json\/wp\/v2\/glossary-cat?post=1841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}