Market failure

good that is non-excludable and non-rival

thumb|Air pollution from [[motor vehicles is an example of a negative externality. The costs of the air pollution for the rest of society is not compensated for by either the producers or users of motorized transport.]]

In economics, a monopsony is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers. The microeconomic theory of monopsony assumes a single entity to have market power over all sellers as the only purchaser of a good or service. This is a similar power to that of a monopolist, which can influence the price for its buyers in a monopoly, where multiple buyers have only one seller of a good or service available to purchase from.

situation in which the allocation of goods and services by a free market is not efficient and can be improved upon from the societal point of view, often leading to a net loss of economic value

in economics, situation creating an incentive to take more risk (or otherwise change one's behavior) when another party will bear the costs

self-interests causing depletion of a shared resource

economics term for when one party in a transaction has an advantage in information

sub-field of economics

consumption of goods & services without payment

type of monopoly where the average costs are always decreasing throughout the market demand

tax on activities generating negative externalities

conflict of interest when one agent makes decisions on another's behalf

economics theorem that if an externality can be traded with no transaction costs, bargaining leads to a Pareto efficient outcome regardless of the initial allocation of property

Risks arising from movements in market variables

economic inefficiency caused by a government intervention, if the inefficiency would not exist in a true free market

government control of an industry or economic sector

selective trading based on possession of hidden information

phrase from economics

1970 paper by the economist George Akerlof

actions in the present which are constrained by actions in the past

resource system or good whose characteristics makes it costly, but not impossible, to exclude potential beneficiaries from obtaining benefits from its use

commerce phenomenon

modification of consumer demand for energy

International exhibition of failed products and services

way of viewing economic activity

inflated level of profit due to the monopolistic practices of an enterprise

branch of economics studying next-best alternatives

political catchphrase

legally closed monopoly

in the theory of public goods in economics, is a condition for the efficient provision of public goods

energy crisis in 2000–01 in California

phenomenon of a series of small rational decisions leading to a significant unwanted consequence

economic dilemma where two parties may be able to work most efficiently by cooperating, but refrain from doing so because of concerns that they may give the other party increased bargaining power and thus reduce their own profits

a public good available on a more-or-less worldwide basis

form of market regulation

unfavourable contract situation