markkinaväärinkäytösepisodit

Markkinavääristymä is a Finnish term that translates to "market distortion" in English. It refers to a situation where the natural forces of supply and demand in a market are disrupted or manipulated, leading to prices or resource allocation that do not reflect true economic efficiency. These distortions can arise from various sources, including government interventions, monopolies, externalities, or information asymmetry.

Government interventions, such as subsidies, price controls, or tariffs, can artificially alter market prices and quantities. For instance, a subsidy can lower the price of a good, encouraging overproduction and consumption beyond the socially optimal level. Conversely, price ceilings can lead to shortages if set below the market-clearing price.

Monopolies, where a single entity controls the supply of a good or service, can restrict output and charge higher prices than would exist in a competitive market. This leads to a deadweight loss, representing a reduction in overall economic welfare.

Externalities, like pollution from a factory, represent costs or benefits that affect third parties not directly involved in a transaction. If these externalities are not accounted for, the market price will not reflect the true social cost, leading to overproduction of goods with negative externalities and underproduction of those with positive ones.

Information asymmetry occurs when one party in a transaction has more or better information than the other. This can lead to adverse selection or moral hazard, where the less informed party makes suboptimal decisions, distorting market outcomes. Recognizing and addressing market distortions is crucial for achieving greater economic efficiency and social welfare.