Market Failure - Definition
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Academic Research on Market Failure The vertical integration of production:market failureconsiderations, Williamson, O. E. (1971). The American Economic Review,61(2), 112-123. This article reviews the vertical integration of pharmaceutical manufacturers between 1993 and 1995. The objective of these strategies was to take control of Pharmacy Benefits Managers (PBMs), to enable drug-manufacturing firms to strengthen their market power by securing an outlet for their drugs. The anatomy ofmarket failure, Bator, F. M. (1958). The quarterly journal of economics,72(3), 351-379. This paper advances the notion that decentralized market calculations correctly account for all 'economic' costs and benefits. It states five possible ways in which duality can fail in a market, the possible causes of these failures, and proposes measures to avoid these failures. This article presents a comprehensive classification scheme for markets, that like the water market, require public intervention in their functioning. Market failureand the economic case for a mandatory disclosure system, Coffee Jr, J. C. (1984). Virginia Law Review, 717-753. The nature of innovationmarket failureand the design of public support for private innovation, Martin, S., & Scott, J. T. (2000). Research policy,29(4-5), 437-447. This paper relates the sources of innovation market failure to the dominant mode of sectoral innovation and outline mechanisms for public support of innovation that target specific sources of innovation market failure. The selection principle andmarket failurein systems competition, Sinn, H. W. (1997). Journal of Public Economics,66(2), 247-274. This paper investigates the possibility of failure if the government were to step in the market using the same system competition as before. This paper presents three different models to support this notion. Taxation, health insurance, andmarket failurein the medical economy, Pauly, M. V. (1986). Journal of economic literature,24(2), 629-675. This paper recognizes that compensating differentials are a function of the income tax rate, using this observation to introduce a methodology for estimating compensating differentials with a specific application to the value of a statistical life (VSL). The problem ofmarket failure, Randall, A. (1983). Natural Resources Journal,23(1), 131-148. Redistributive cooperation:market failure, wealth transfers, and the Basle Accord, Oatley, T., & Nabors, R. (1998). International Organization,52(1), 35-54. This study analyses the notion that theories of international cooperation rely on claims about joint gains to argue that governments create international institutions to mitigate information and enforcement problems and realize efficient solutions. In this paper, a model is presented in which politicians propose international institutions to resolve domestic political dilemmas and suggest that the international institutions they propose are sometimes intentionally redistributive. This paper aims to show that that domestic politics rather than international market failure motivated American policymakers to propose international regulation using approaches according to Basle Accord. Privatization and corporate governance: The lessons from securitiesmarket failure, Coffee Jr, J. C. (1999).J. Corp. L.,25, 1. This paper analyzes the comparative experiences of Poland and the Czech Republic with voucher privatization. Are network externalities a new source ofmarket failure?, Liebowitz, S. J., & Margolis, S. E. (1995).Research in Law and Economics,17(0), 1-22. This study examines the traditional concept of network externality, which states that a product's value to a consumer changes as the number of users of the product changes. In this paper the authors elaborate a claim that, in spite of the popularity of the concept, several important aspects of network externalities have been neglected or misunderstood. The objective of this study is to show that the empirical importance of network externalities, as externalities, has been greatly overstated. Market failureand government failure, Datta-Chaudhuri, M. (1990).Journal of Economic Perspectives,4(3), 25-39. This study examines the debate in development economics on the relative virtues of the free market as opposed to state intervention. The study shows that development during the last four years has modified the concept of this debate. This paper pieces together some lessons from the development experiences of the last four decades to enrich the general understanding of the role of the state in the process of economic development. Knowledge,market failureand the multinational enterprise: A reply, Kogut, B., & Zander, U. (1995).Journal of international business studies,26(2), 417-426.