I'd suggest this article as a better libertarian treatment of market failure: "Market Failure: An Argument for and Against Government" http://www.daviddfriedm

I'd suggest this article as a better libertarian treatment of market failure: "Market Failure: An Argument for and Against Government" http://www.daviddfriedman.com/Machinery_3d_Edition/Market%20Failure.htm http://www.daviddfriedman.com/Machinery_3d_Edition/Market%20... David Friedman doesn't deny that market failures exist, but he points out that the exact same economic phenomenon happens with government, and there's no inherent reason why government is more or less susceptible to it than markets.