Market Failure
Market Failure refers to the situation where the market fails to produce efficient outcomes. Continuing with "selfish judgments" in such situations can worsen the situation for the general public. Economists have identified Monopoly, Asymmetry of Information, 負の外部性 (negative externality), and Public Good as common factors in market failure. Supporters of what is commonly known as "Big government" advocate for increased government intervention to address these failures and discuss the issues after categorizing them. In a free market, it is inappropriate to provide non-excludable and non-rivalrous public goods. Non-excludability refers to a situation where individuals cannot avoid using a good or service. When a specific person can benefit from a good without paying for it, others can also use it without paying, leading to a focus on obtaining benefits without contributing. As the number of people who seek benefits without paying increases, the problem of free-riders arises, resulting in under-supply and making it difficult to create "beneficial public goods." Examples of pure public goods include national defense, police, and dams. However, if left to the mechanisms of the free market, funding for such projects may become difficult. Therefore, by taking on the role of funding for construction, the government enables the construction of public goods that are useful in daily life and allows the general public to benefit from them.
Blockchain contracts can create public projects with more consumer choice. However, this seems to be a context where many people participate in public goods, but it is merely a power-based solution that collects fees from individuals (toC) and provides economies of scale. It does not provide a Microeconomics-based solution. tkgshn mentioned this on October 3, 2021 .