4 ms·
It isn't a market failure if it is a result of regulation
by friedman23 10y ago
It isn't a market failure if it is a result of regulation
- davidf18 10y agoThere are laws and regulation that protect people from harm, e.g. product safety, physician licensing, FDA drug approvals, food inspections, etc. Then there are regulations that help special interests get an unearned portion of wealth. That would include these landowners benefiting from zoning density restrictions or in NYC before Uber/Lyft came along, the artificial restriction of 13,000 taxi medallions for a population of 8.5 million.
- sodawater 10y agoPardon me, but thats not a mutually exclusive distinction.
- randyrand 10y agoGotta agree with you there. Market failures refer to failure in a free market, or some problem caused by some market being too free. Regulation failures are problems caused by bad/too much/too little regulation. In this sense, regulation failure can sometimes overlap with market failures.