Term:
Market failure
Definition:
Market failure is a general term describing situations in which market outcomes are not Pareto efficient. Market failures provide a rationale for government intervention.
Domain:
Finance
Source:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993
