market failure
Noun
Meaning
market failure (countable and uncountable, plural market failures)
(economics) A situation in which the allocation of goods and services by a free market is not efficient.
Coordinate term: government failure
Examples
Market failure in positive economics (microeconomics) is limited in implications without mixing the belief of the economist and their theory.
Systemic weaknesses Externalities main Market failure occurs when an externality is present and a market will often either under-produce a product with a positive externalisation or overproduce a product that generates a negative externalisation.