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This is from the school of economics commonly taught at any university that can get past the free market love fest that so many business economics courses focus
by ecounysis 16y ago
This is from the school of economics commonly taught at any university that can get past the free market love fest that so many business economics courses focus on. I believe the technical term for externalities and such is "market imperfection".
- T_S_ 16y agoExternalities are one form. They are the source of imperfections in markets for scarce resources. Informational asymmetries are another source of imperfection. I don't think taxes and subsidies can help remedy them. Regulation that promotes information sharing is the only remedy I know.
- khafra 16y agoIt can be considered a form of regulation, but Mechanism Design studies the creation of systems that incentivize transparent information sharing.