Market failure and information failure 3.5 / 5 based on 4 ratings ? EconomicsMarket failureASOCR Created by: JadeCreated on: 01-12-12 14:00 What is market failure? Market failure is where the free market mechanism fails to meet economic efficiency with the result of an inefficient use of scarce resources 1 of 3 What is information failure? Information failure is a lack of information resulting in consumers and producers making decisions that do not maximise welfare. 2 of 3 What is asymmetric information? Asymmetric information is information not equally shared between two parties carrying out a transaction 3 of 3
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