Markkinaepäkohtaisuus

Markkinaepäkohtaisuus refers to a situation in economics where a market mechanism fails to allocate resources efficiently, leading to suboptimal outcomes. This can occur for several reasons, including the presence of externalities, information asymmetry, public goods, and market power. Externalities arise when the production or consumption of a good or service affects a third party not directly involved in the transaction. For instance, pollution from a factory is a negative externality, imposing costs on society that are not borne by the polluter. Information asymmetry occurs when one party in a transaction has more or better information than the other, leading to potential exploitation and inefficient choices. The classic example is the used car market, where sellers often know more about the car's condition than buyers. Public goods are non-excludable and non-rivalrous, meaning they can be enjoyed by everyone without diminishing their availability to others, and it is difficult to prevent people from using them even if they don't pay. National defense and clean air are examples. Because individuals can benefit from public goods without paying for them, private markets tend to under-provide them. Market power, such as that held by monopolies or oligopolies, allows firms to restrict output and charge higher prices than would prevail in a competitive market, resulting in a deadweight loss to society. Governments and other institutions often intervene to address market failures through regulations, taxes, subsidies, or direct provision of goods and services, aiming to move the market closer to an efficient allocation of resources.