Markkinaepäkohtaisuuksien

Markkinaepäkohtaisuus, known in English as market failure, refers to a situation where the allocation of goods and services by a free market is not efficient. This means that the market, left to its own devices, does not produce the optimal outcome for society. Several factors can lead to market failures, including externalities, public goods, information asymmetry, and market power.

Externalities occur when the production or consumption of a good or service affects a third party who is not directly involved in the transaction. Positive externalities, such as vaccinations or education, generate benefits for society beyond the individual consumer, while negative externalities, like pollution from factories, impose costs on society.

Public goods are characterized by non-excludability and non-rivalry. This means that it is difficult or impossible to prevent people from consuming the good even if they do not pay for it, and one person's consumption does not diminish another's. Examples include national defense or street lighting. Free markets often under-provide public goods because individuals have an incentive to "free-ride" on the contributions of others.

Information asymmetry arises when one party in a transaction has more or better information than the other. This can lead to inefficient outcomes, such as in the market for used cars where sellers typically know more about the car's condition than buyers.

Market power, often in the form of monopolies or oligopolies, allows firms to restrict output and charge higher prices than would prevail in a competitive market, leading to a deadweight loss and reduced consumer welfare. Governments often intervene to address market failures through regulations, taxes, subsidies, or direct provision of goods and services.