Missing market

From Market
Revision as of 15:52, 30 March 2009 by Vipul (talk | contribs) (Created page with '==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 ...')
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)

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.