7. Market Failure - Types of Goods

Set 2 - Market Failure

A compilation of Microeconomic study resources that focus on market failure and its causes. It covers. **Externalities** * Costs and benefits (private, external, social, etc.) * Negative production externalities * Negative consumption externalities * Positive production externalities * Positive consumption externalities **Types of Goods** * Free goods * Economic goods * Public goods * Private goods * Merit goods * Demerit goods **Monopoly Power** * How abuse of monopoly power results in market failure * Why governments should regulate monopolies * Government intervention and regulation of monopolies **Inequality** * Inequality and why it persists in the free market * Measures of inequality * Government intervention: methods to reduce income and wealth inequality. **Information Failure** * Causes of information failure * Asymmetric information (Adverse selection and moral hazard) * Methods to resolve information failure * Behavioral insights and nudge theory