Market failure

Critical Review 7 (4):525-537 (1993)
Abstract
The Theory of Market Failure explores how markets respond, both in theory and in practice, to public?goods and externality problems. Most of the articles in this anthology find that markets often meet the demand for public goods in a variety of cases where existing theory would lead one to expect market failure. Moreover, upon reflection, existing theory reveals itself to be in need of supplementation by a more realistic picture of how flexible markets (and evolving systems of property rights) respond to the demand for public goods and for the means of internalizing externalities
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