Markkinatasapainoon

Markkinatasapainoon, also known as market failure, refers to a situation in which the free market does not allocate resources efficiently. This inefficiency can occur due to various reasons, including externalities, public goods, information asymmetry, and market power. Externalities occur when the actions of one party affect a bystander, either positively or negatively, without the bystander's consent. Public goods are non-excludable and non-rivalrous, meaning that one person's consumption does not reduce the availability for others. Information asymmetry arises when one party has more or better information than the other, leading to unequal bargaining power. Market power refers to the ability of a single firm or a small group of firms to influence market prices and outcomes.

Market failure can lead to inefficiencies such as underproduction or overproduction of goods, as well as the underprovision or overprovision of public goods. To address market failure, governments often intervene through policies such as taxation, regulation, and public provision of goods and services. These interventions aim to correct market distortions and promote more efficient resource allocation. Understanding market failure is crucial for policymakers and economists to design effective interventions and ensure that markets function as intended.