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Different economists have different views about what events are the sources of market failure. Mainstream economic analysis widely accepts a market failure (relative to Pareto efficiency) can occur for three main reasons: if the market is "monopolised" or a small group of businesses hold significant market power, if production of the good or service results in an externality, or if the good or service is a "public good".
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Famous quotes containing the word categories:
“all the categories which we employ to describe conscious mental acts, such as ideas, purposes, resolutions, and so on, can be applied to ... these latent states.”
—Sigmund Freud (1856–1939)
“The analogy between the mind and a computer fails for many reasons. The brain is constructed by principles that assure diversity and degeneracy. Unlike a computer, it has no replicative memory. It is historical and value driven. It forms categories by internal criteria and by constraints acting at many scales, not by means of a syntactically constructed program. The world with which the brain interacts is not unequivocally made up of classical categories.”
—Gerald M. Edelman (b. 1928)
“Kitsch ... is one of the major categories of the modern object. Knick-knacks, rustic odds-and-ends, souvenirs, lampshades, and African masks: the kitsch-object is collectively this whole plethora of “trashy,” sham or faked objects, this whole museum of junk which proliferates everywhere.... Kitsch is the equivalent to the “cliché” in discourse.”
—Jean Baudrillard (b. 1929)