Economics · Micro
Market Failures & Externalities
Markets fail when prices don't reflect true costs or benefits. Externalities, public goods, information asymmetry and market power, and the tools for each: Pigou taxes, Coasean bargaining, cap-and-trade and regulation.
Step 1 of 5 · Overview35 min read ·
Key idea
Prereqs: Supply & demand; Elasticity. Next: GDP & growth. Follows MIT OCW 14.01 (Gruber, lectures 21–23) and Mankiw's *Principles* ch. 10–11.Next: 1. Externalities