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Jakub B

Why do economists describe climate change as a 'market failure'? - 0 views

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    When free markets do not maximise society's welfare, they are said to 'fail' and policy intervention may be needed to correct them. Many economists have described climate change as an example of a market failure - though in fact a number of distinct market failures have been identified.
Yassine G

Letter: Walmart is a market failure with many 'negative externalities' - 1 views

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    Walmart is considered to be the business number one in the world, in terms of revenue. However, from this article you can clearly see how their behavior towards stakeholders is really unethical. Many other articles also talk about how they treat their employees. This makes it clear that there is a negative externalize involved with this business. 
Haydn W

Broadcasters failing to keep up with 3D TV demand - Telegraph - 0 views

  • 60 million 3D TVs are expected to be sold in 2013, and this figure is set to rise to 157.7 million by 2017, accounting for 58 per cent of all TVs sold across the globe
  • broadcasters' approaches to delivering 3D content differ widely
  • In the UK, with BSkyB has reaffirmed its commitment and Virgin Media increased its range of 3D broadcasting, while the BBC has postponed trials, which they have decided to conclude by the end of this year and will make no further 3D programmes for 3 years
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  • 3D content will become increasingly restricted to premium and on-demand offerings.
  • the unique appeal of 3D to the consumer is that it offers greater immersion in content
  • A number of major broadcasters are now diverting investment to other initiatives, such as 4K and multi-screen content delivery.
  • Futuresource Consulting added that the market for 3D cinema remains stable.
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    This article shows how the demand for 3D TV's is increasing but broadcasters continue to not offer much 3D content to their viewers. 3D TV's were predicted by many to be a commercial failure, as the home experience is said to be not as good as the cinema experience but demand has continued to rise among consumers. Broadcasters however are not so keen to provide 3D content as they have their ever changing gaze to future investment in 4K technology in the continuous attempt to keep up with the relentless pace of modern technology.
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    I think that one of the reason that will not allow 3D technology to get popular is its very high cost. This is not only for consumers who are buying the TVs and Glasses, but also for producers. IT is an extra cost, without an extra profit.
Haydn W

Structural Adjustment Policies and Africa - A Reply to Shantayanan Devarajan - 0 views

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    This article explains how the utilisation of Structural Adjustment Policies in developing African countries is failing to bring about the growth they are claimed to achieve. SAP's were designed to achieve economic diversification and reduce poverty among other things but the author of this article argues that they have not achieved any of these any of these aims. SAP's are an example of government intervention in a market to prevent negative externalities.
Pietro AA

Effects of dumping radioactive waste in ocean need more study, scientists say - 1 views

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    I found this article very interesting because it has to do with externalities and common goods. I think this article may be associated with the article "Trajedy of the Commons" which we read because instead of talking of men's overconsumption of grass lands, it talks about the overcosumption of the ocean's self-purifying system. Generally, when talking about production of electricity through fission power plants, there will be unusable waste that is highly harmful for men and the environment because it emits highly ionizing radiation. But producers of that energy simply throw that waste in the oceans and wash their hands of the problem. The cost of society for that energy is equal to the producer's cost plus the cost for that damage the nuclear waste does. The marginal social cost is greater then the marginal private cost. But since, in a free market, it the private who determines the quantity consumed, there will be too much nuclear electricity produced with respect to society. "too much" means that resources are not optimally allocated and therefore there is a market failure.
Haydn W

Greece's leader warns Merkel of 'impossible' debt payments - FT.com - 0 views

  • Greece’s leader warns Merkel of ‘impossible’ debt payments
  • Alexis Tsipras, the Greek prime minister, has warned Angela Merkel that it will be “impossible” for Athens to service debt obligations
  • The warning, contained in a letter sent by Mr Tsipras to the German chancellor and obtained by the Financial Times, comes as concerns mount that Athens will struggle to make pension and wage payments at the end of this month and could run out of cash before the end of April.
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  • just before Ms Merkel agreed to meet Mr Tsipras on the sidelines of an EU summit last Thursday and invited him for a one-on-one session in Berlin
  • Mr Tsipras warns that his government will be forced to choose between paying off loans, owed primarily to the International Monetary Fund, or continue social spending.
  • He blames European Central Bank limits
  • “Given that Greece has no access to money markets, and also in view of the ‘spikes’ in our debt repayment obligations during the spring and summer . . . it ought to be clear that the ECB’s special restrictions when combined with disbursement delays would make it impossible for any government to service its debt,” Mr Tsipras wrote.
  • He said servicing the debts would lead to a “sharp deterioration in the already depressed Greek social economy
  • Mr Tsipras was rebuffed in efforts to secure quick financing from either the ECB or eurozone lenders at Thursday’s Brussels meeting
  • In an interview, Luis de Guindos, Spanish finance minister, said his eurozone counterparts would not sign off on any new bailout funding until a full set of approved reforms was passed
  • Mr Tsipras’s five-page letter is particularly critical of the ECB
  • The Greek prime minister insisted the ECB should have returned to “the terms of finance of the Greek banks”
  • Far from going easier on Athens, the ECB is considering whether to give its guidance to Greek banks more authority by making it a legally binding requirement not to add to their T-bill holdings.
  • He also criticised the ECB for only increasing the amount of emergency central bank loans to Greek lenders “at shorter intervals than normal and at rather small increments”
  • Mr Tsipras wrote that Athens was “committed to fulfilling its obligations in good faith and close co-operation with its partners”, he also warned Ms Merkel that a failure to find short-term funding could lead to much bigger problems.
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