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Market Failure and the role of government in the economy ~ an introduction to...
Economics is the field of study that attempts to address the basic problem faced by society relating to the environment and natural resources: the problem of scarcity in a world of infinite wants....
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Negative externalities of consumption: Britain’s “inebriated hooligans”
Some Britons Too Unruly for Resorts in Europe – NYTimes.com According to the article above, Great Britain exports more trouble to the rest of Europe than any other nation. A recent report published by...
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Robert Reich on Obama’s “cap and trade” plan for the environment
Robert Reich’s Blog: Is Obamanomics Conservative or Revolutionary? Former Secretary of Labor and Berkely Economist thinks Obama’s federal government budget is conservative and responsible. He also...
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Would a soda tax make Americans better off?
Econ professor and blogger Tim Haab has posted a great story on market failure, efficiency and corrective taxes at his blog, Environmental Economics: I love when someone else does my work for me. With...
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Grinchonomics – or “how the Economist stole Christmas”
Every year around this time economics students and teachers alike begin looking forward to the long Christmas holiday right around the corner. Two or three weeks of yuletide cheer, mistletoe, snow men,...
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Market Failure and Bullets
Should hunters switch to ‘green’ bullets? – CNN.com Chis Rock once said, “We don’t need gun control, we need bullet control. I think a bullet should cost $5,000, cause if a bullet cost $5,000 there...
View ArticleInternalizing externalities: Zurich’s expensive garbage
This post is about how Switzerland has successfully employed an innovative system of incentives to encourage its citizens to reduce the amount of garbage they create. Just three weeks in this amazing...
View ArticleA video and audio introduction to Market Failure
Each of the following videos or audio clips illustrate an example of a market failure. Watch or listen to each and answer the questions that follow: Story #1: “Cowboy City” Story #6: Sweatshops and...
View ArticleMarket failure versus Government failure – what should we be more concerned...
One of the most prominent economists of the 20th century was the late Milton Friedman, an ardent free market supporter who remained skeptical of government’s ability to correct market failures through...
View Article“I am the condom friend ever useful to you”
Market failures exist all around us. Until you have studied the concept, however, you would probably never know it! Not all market failures are in the form of pollution, however, and in fact many of...
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Grinchonomics, 2nd edition: “Santa’s hollow threat…” or “how the Economist...
Last year, I argued that Christmas was the most inefficient time of the year due to the large loss of welfare that goes with the tradition of gift giving. This year I will argue that Santa Claus, as...
View ArticleThe Tragedy of the Commons as a Market Failure
Over the last few weeks in our IB Economics class, we have been studying cases in which markets fail to achieve an efficient, socially optimal level of production and consumption when the private...
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“Cap & Trade”– An introduction market-based approaches to pollution reduction
Inside Obama’s Green Budget – Forbes.com Some say that Global Warming may be the greatest market failure of all. This podcast was originally broadcast in January of 2007 while George Bush was still in...
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Has the Baby Market Failed?
The tools of economics can be applied to almost any social institution, even the decision of individuals in society whether or not to have children. All over the rich world today, potential parents...
View ArticleEfficiency and Market Failure in “Anchorman”
As a follow up to my recent post, A Video and Audio Introduction to Market Failure, I plan to introduce the diagrams we use to illustrate and analyze negative and positive externalities and the...
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