About this document
Public Goods and Market Failures Explained by Priyanka is a document available to read on EtoBox.
This document discusses two situations where markets may fail: public goods and externalities. For public goods, which are non-rival and non-excludable, the free rider problem leads to underprovision in free markets. For externalities, market transactions do not account for external costs or benefits, so the market outcome is not socially efficient. Government intervention may be needed to more efficiently provision public goods and address externalities.
- Author
- Priyanka
- Language
- EN