Market Failure
/ˈmɑːrkɪt ˈfeɪljər/
Definitions
- (n.) A situation where the allocation of goods and services by a free market is not efficient, often justifying regulatory intervention.
The government imposed new regulations to correct the market failure caused by monopolistic practices.
- (n.) An economic condition recognized in law that may warrant antitrust or regulatory action to protect public interest.
Market failure in the energy sector prompted legislative reforms to ensure fair competition.
Forms
- market failure
- market failures
Related terms
See also
Commentary
Legal discussions of market failure often focus on its implications for regulatory policy and antitrust enforcement.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.