Summary: What is a market failure? Photo: NASA A market failure in economics happens when goods and services aren’t allocated appropriately—when people don’t get what they pay for, or when someone gets a free-ride. It’s like slip-streaming on the highway: if I follow a truck closely, I can benefit from the turbulence behind the trailer. But I can only do that if I follow so close that I can’t see hazards in the road ahead. There’s no free […]
