When you think of forms of market failure, what comes to mind? Have you ever identified a market failure that has affected your job or industry? What about any products or services that you use or have used? Consider how these failures are addressed, if at all, by government entities or regulators. Does the intervention help to improve outcomes?

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In this Discussion, you will identify and evaluate two or more forms of market failure that affect you, explain their causes, and explain the role of government intervention in addressing them.

To prepare for this Discussion:

  • Review this week’s Learning Resources, with an emphasis on the various forms of market failure and typical remedies for correcting them.
  • Identify two or three forms of market failure that affect you, such as a negative or positive externality, a public good provided by a local government, or asymmetric information about the safety of consumer products you purchase.
  • Review the Academic Writing Expectations for 1000-Level Courses, provided in this week’s Learning Resources.

By Day 3

Post a 150- to 225-word (2- to 3-paragraph) description of two forms of market failure you identified. In your description, address the following:

  • What are the causes of the market failure?
  • Explain whether or not government regulation is involved with correcting the market failures, and share your views on the success of the intervention.
  • To support your response, be sure to reference at least one properly cited scholarly source.

Refer to the Week 5 Discussion Rubric for specific grading elements and criteria. Your Instructor will use this grading rubric to assess your work.

Read some of your colleagues’ postings.

By Day 5

Respond with at least 75 words (1 paragraph) each to two or more of your colleagues’ postings by agreeing or disagreeing with their views on the appropriateness and success of government intervention or lack thereof with respect to one of the market failures identified. Support your position with examples and/or economic analysis.

Return to this Discussion in a few days to read the responses to your initial posting. Note what you have learned or any insights you have gained as a result of the comments your colleagues made.

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