Missing market: Difference between revisions
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==Definition== | ==Definition== | ||
'''Missing market''' refers to a situation where certain parties whose actions affect each other are not able to negotiate with each other. The term is typically used when describing externalities, where the people affected by the externalities of an action are unable to negotiate with the people who take the action. | '''Missing market''' refers to a situation where certain parties whose actions affect each other are not able to negotiate with each other. The term is typically used when describing externalities ([[external cost]]s and [[external benefit]]s), where the people affected by the externalities of an action are unable to negotiate with the people who take the action. | ||
Latest revision as of 13:12, 16 June 2009
Definition
Missing market refers to a situation where certain parties whose actions affect each other are not able to negotiate with each other. The term is typically used when describing externalities (external costs and external benefits), where the people affected by the externalities of an action are unable to negotiate with the people who take the action.