What is another word for market failure?

Pronunciation: [mˈɑːkɪt fˈe͡ɪli͡ə] (IPA)

Market failure is a term that refers to a situation where free market mechanisms fail to allocate resources efficiently. There are various synonyms to express this concept, including misallocation, inefficiency, and breakdown of the market. Misallocation can refer to resources being allocated in a way that does not maximize social welfare. Inefficiency refers to a scenario where it is possible to improve societal welfare without decreasing anybody's well-being, which the market has failed to achieve. When any circumstances affect the functioning of a free-market system, it can lead to the breakdown of the market, which results in market failure. Overall, these synonyms are used in economics to illustrate the failure of the market to work efficiently and effectively.

Synonyms for Market failure:

What are the hypernyms for Market failure?

A hypernym is a word with a broad meaning that encompasses more specific words called hyponyms.

Famous quotes with Market failure

  • It was an interesting question as to whether the BBC had a future in the digital world, and what form of market failure could justify the licence fee system.
    Gavyn Davies
  • Lucas’s “Mechanics” Lectures caught the profession by surprise. His argument enraged some economists and startled or puzzled others. It was his first word on the subject of growth. It seemed to have come completely out of the blue. And even though his interest in the possibility of market failure seemed curiously in tune with fifty years of the Keynesian tradition, it was unfamiliar enough when expressed in the vernacular of Freshwater economics that the lectures at first caused more consternation than anything else, and in most quarters they were studiously ignored. A few young researchers, however, were galvanized into immediate action. The notion that trade and migration must be strongly linked to economic growth was hardly new. Nor was the insight that cities must be central to economic progress. Perhaps the real news from Lucas’s lectures was his identification of lock-in as a potentially serious puzzle.
    David Warsh

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