Group items tagged

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.

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. 

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.

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.

This is a question about price elasticity, since something needs to be improved in the quality of the website so there will not be problems anymore, often resulting in a necessary price change. Since health insurance is seemed as necessary for many and hence the responsiveness is big, the demand might not change as much in a change in price of the website even tough there are problems at the website. If there will not be an improvement of the website and the price will increase, there might be a smaller change in the quantity demanded.

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.

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.