Source: Image of factory, public domain, http://www.clker.com/clipart-1773.html
The effects of a good or service to a third party; can be negative or positive.
A situation where the free market does not create an optimal situation between those demanding a good or service and those supplying a good or service. Market failures are addressed through government intervention.
A situation involving government intervention that results in increased inefficiency in the allocation of goods and services.
When information is not equally available to all parties; lack of complete transparency. This results in an advantage to those individuals having full information.
Markets where price setting (or quantity supplied) occurs without interaction between suppliers and demanders. Lack of competitive forces; free market is not the basis for trading.
When a principal party cannot trust or motivate the agent party to conduct business that is not self-serving.
A good that is considered both non-rivalrous and non-exclusive.