Theories of market failure in the politics of commodity distribution
In this two-part essay, I argue that at least part, if not all, of the market failure argument fails to prove its validity. In Part I I look at the problem of contract enforcement and in Part II I look at the provision of public goods. There have been other writings using similar arguments to the same effect, but there can't be too many of them. 1. In precise terms, market failure is “. an economic term that encompasses a situation where, in a given market, the quantity of a product demanded by consumers is not equal to the quantity supplied by suppliers” para. 1. This scenario is believed to arise from the absence of certain economically ideal factors. 1. Defining public goods and distinguishing between different types of public · Rivalry and non-excludability. Although Nobel Prize winner Paul Samuelson is usually credited with introducing public goods theory to modern economics, for example, the origins of the idea dating back to John Stuart, economics increased. The audience has grown excessively and new problems have arisen as a result of the. increase in government intervention. For this reason, in other words, the 'Governmental Failure Theory'. The article provides a multidisciplinary overview of normative and empirical issues related to labor markets and inequality in contemporary capitalist democracies. It begins with a discussion of philosophical controversies in relation to issues of distributive justice. This is followed by an overview of people's attitudes and opinions, as shown in: For this reason, almost all plausible political theories endorse some form of government provision of public goods, although each will support a different bundle, and for different reasons. According to David Schmidtz, 'one of the most attractive features of the public goods argument for government intervention is the minimal nature of the public goods,