Public.icon
Market failure refers to a situation where the market fails to produce efficient results, and if "selfish judgments" continue in such a situation, the situation will worsen for the general public.
Four issues pointed out: Economists point out that "monopoly, asymmetric information, negative externalities, and public goods" are common points related to "market failure".
Supporters of the so-called 'big government' classify these failures and support increased government intervention to correct them.
In a free market, it is inappropriate to provide non-excludable and non-competitive public goods.
Non-excludable refers to a situation where goods or services must be used.
When specific individuals can benefit from the goods, those who do not pay can also use them, so they try to get the benefits only.
If more people try to get benefits without paying, the problem of free riders occurs, the supply becomes insufficient, and as a result, "useful public goods are less likely to be created."
"National defense, police, dams," etc. are examples of pure public goods, but if left to the free market mechanism, it may be difficult to raise funds for the project.
Therefore, by having the government take on the role of fundraising for construction, public goods that are useful for daily life can be built, and the general public can benefit.
/emoji/twitter.icon ── Blockchain contracts will create public projects with more consumer choice. Hmm, this is a context where many people participate in public goods, but it is just a power-based solution that collects fees from ToC and has scale merits, and it does not solve the microeconomics problem. https://t.co/E0IX5wPuAZ