Market failure
Factories and refineries provide jobs, but they also pollute the environment. In economics, this is an example of market failure.
In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient. Common causes of market failure are information assymmetries, externalities, natural monopolies and public goods. Market failure is one of the reason why a state regulates a market to improve the allocation.
Market Failure Media
Congested Avenue of the Americas in Midtown Manhattan, New York City, which leads the world in urban automobile traffic congestion, but which has implemented congestion pricing in January 2025 to address the gridlock
