ECON-UA 2 Lecture Notes - Lecture 23: Market Failure, Information Asymmetry, Clayton Antitrust Act
13 Dec 2016
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Document Summary
Without which markets could function only primitively, if at all. Protect us from many kinds of physical and emotional harm. Guarantee us freedom of speech and other vital civil liberties. Help provide a sense of security and dignity in our lives. Ways in which it supports markets and helps us achieve economic efficiency. Encourages people to channel their efforts into mutually beneficial, By discouraging the chief alternative: trying to benefit at the expense of others. By adding the possibility of arrest and penalties. Enables parties to exchange promises involving future activities. Directs businesses to take specific actions and prohibits other actions, often on a case-by-case basis. This can contribute to efficiency by protecting buyers, sellers, or third parties. From some of the potential harm that market exchanges might otherwise cause. Serious economic inefficiency that reduces living standards. Accounts for about 44% of the world"s productive wealth. Large percentage of total wealth in the most productive, highest-income countries.
