A quick question for AC Peeps: Market failure

[valtaherra]

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because the market is in a sense a weighted democracy (everyone get's one vote per unit of wealth).

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Sort of but not really. When I "vote" for crunchy peanut butter in the market by purchasing it, no one comes to your house, confiscates all of your creamy peanut butter and forces you to consume crunchy peanut butter.

[Dan.]

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because the market is in a sense a weighted democracy (everyone get's one vote per unit of wealth).

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Sort of but not really. When I "vote" for crunchy peanut butter in the market by purchasing it, no one comes to your house, confiscates all of your creamy peanut butter and forces you to consume crunchy peanut butter.

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But when the producer decides to produce more crunchy rather than creamy peanut butter, I may not be able to get creamy peanut butter.

[nietzreznor]

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Extreme overgeneralization. Some regulation undoubtely does that, some even intentionally and all but explicitly does that, but not all.

Businesses definitely want PROTECTIONISM for themselves and competition for others, but not all regulation=protectionism for business.

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Well, I wasn't trying to say that ALL regulation was protectionism, per se, nor that businesses found ALL regulation beneficial.

But ALL regulation is anti-competitive, since all regulation by its very nature limits some aspect of enterprise that would otherwise have been open to competition between different companies.

[pvn]

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because the market is in a sense a weighted democracy (everyone get's one vote per unit of wealth).

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Sort of but not really. When I "vote" for crunchy peanut butter in the market by purchasing it, no one comes to your house, confiscates all of your creamy peanut butter and forces you to consume crunchy peanut butter.

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But when the producer decides to produce more crunchy rather than creamy peanut butter, I may not be able to get creamy peanut butter.

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You can make your own. You don't have an entitlement to have creamy peanut butter provided to you.

[clowntable]

Ok, maybe i should be more explicit. Personaly I oppose child pornography for various reasons. I'd estimate that around 90% or more of the population (at least > 50%+1) of any given country does the same.
Yet there is a market for it and there would be a market for it if it was legal as well (I cannot prove this of course). So maybe the question should not be weather there is market failure (I'm sure the child porn market works) but instead if and why certain markets exist and if this is a failure in and of itself.
This is however a highly philosophical problem.

[Nielsio]

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Ok, maybe i should be more explicit. Personaly I oppose child pornography for various reasons. I'd estimate that around 90% or more of the population (at least > 50%+1) of any given country does the same.
Yet there is a market for it and there would be a market for it if it was legal as well (I cannot prove this of course). So maybe the question should not be weather there is market failure (I'm sure the child porn market works) but instead if and why certain markets exist and if this is a failure in and of itself.
This is however a highly philosophical problem.

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Do you think there is a market of people valueing the protection of children?

[bkholdem]

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Ok, maybe i should be more explicit. Personaly I oppose murder for hire for various reasons. I'd estimate that around 90% or more of the population (at least > 50%+1) of any given country does the same.
Yet there is a market for it and there would be a market for it if it was legal as well (I cannot prove this of course). So maybe the question should not be weather there is market failure (I'm sure the murder for hire market works) but instead if and why certain markets exist and if this is a failure in and of itself.
This is however a highly philosophical problem.

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[almostbusto]

Borodog needs to go back to physics. Market failures definitely have occurred, are occurring, and will occur in the future. It is simply because they are many things that are external to market transactions.

I am a HUGE supporter of free market economics too. Libertarians and "ACists" need to learn from 99% of economists and address these issues rather than sticking their heads in the sand.

[Nielsio]

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Borodog needs to go back to physics. Market failures definitely have occurred, are occurring, and will occur in the future. It is simply because they are many things that are external to market transactions.

I am a HUGE supporter of free market economics too. Libertarians and "ACists" need to learn from 99% of economists and address these issues rather than sticking their heads in the sand.

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Can you give an example of a 'market failure'? Can you also give your proposal how to deal with such?

[BCPVP]

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Borodog needs to go back to physics. Market failures definitely have occurred, are occurring, and will occur in the future. It is simply because they are many things that are external to market transactions.

I am a HUGE supporter of free market economics too. Libertarians and "ACists" need to learn from 99% of economists and address these issues rather than sticking their heads in the sand.

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What issues? Perhaps you could give us some examples of these market failures you're talking about?