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Market Failure
A situation in which the allocation of goods and services by a free market is not efficient.
Externalities
Benefits or costs generated by a transaction that affect someone not directly involved in the transaction.
Information Asymmetry
A situation where one party in a transaction has more or better information than the other.
Natural Monopolies
A market situation where a single supplier is more efficient than multiple competing ones, often seen in utility companies.
Rivalrous Goods
Goods that, when consumed by one individual, cannot be consumed by another.
Excludable Goods
Goods that can be restricted to a single user or entity, preventing others from accessing them.
Congestion
A situation where the number of users of a good diminishes its quality or usefulness, often seen with public resources.
Positive Externalities
The benefits received by third parties from a transaction that they were not part of.
Negative Externalities
The costs suffered by third parties from a transaction that they were not part of.
Monopoly
A market structure where a single company or entity has significant control over a market, preventing competition.
Price Discrimination
The practice of charging different prices to different consumers for the same product.
Public Good
A good that is non-excludable and non-rivalrous, meaning it is available for everyone to use without diminishing its availability.
Inequity
An unfair or unequal distribution of resources or opportunities within a market.
Efficacy of Solutions
The effectiveness of proposed strategies to address market failures.
Regulation
Government intervention in the market to promote fairness and prevent monopolies or market failures.
Minimum Standards
Regulatory requirements set to ensure a baseline of quality or fairness in a market.
