To me, probably the most important market failures rise from information asymmetries. Not only the textbook cases where you know something I don't, but would un

To me, probably the most important market failures rise from information asymmetries. Not only the textbook cases where you know something I don't, but would understand if you told that to me (lemon markets for cars), but the ones where I am so dumb compared to you that even if you tried to explain me, I would not understand (monty hall problem as an extremely simple example). Even further, the issues where you manipulate me to want things that are bad for me, are a kind of information asymmetry. The problem is that the latter concepts do not seem to enter mainstream economics or libertarian mindset. People (including me) are manipulable and stupid. And having no control how much stupid people are going to be manipulated for benefit of others, would end up very bad very fast. What comes to Coase, here is an interesting example of Coase failures: http://evonomics.com/resolve-fights-reclining-airplane-seats-use-behavioral-economics/ http://evonomics.com/resolve-fights-reclining-airplane-seats...