market failure
[ˈmɑːrkɪt ˈfeɪljər]
nounpl: market failures
falha de mercado
1. A situation in which the allocation of goods and services by a free market is not efficient, leading to a loss of economic welfare
Pollution is a classic example of market failure because factories don't bear the full cost of their emissions.
A poluição é um exemplo clássico de falha de mercado porque as fábricas não arcam com o custo total de suas emissões.
2. An economic inefficiency where the quantity of a product allocated by a free market is not optimal from a societal perspective
The housing crisis in many cities represents a market failure that requires government intervention.
A crise habitacional em muitas cidades representa uma falha de mercado que requer intervenção governamental.
3. A condition where individual incentives do not lead to socially optimal outcomes
Information asymmetry in the used car market is a market failure that disadvantages buyers.
A assimetria de informação no mercado de carros usados é uma falha de mercado que prejudica os compradores.
This is a key concept in economics education and policy debates in both Brazil and the USA. In Brazil, market failure discussions are particularly prominent in debates about infrastructure, education, and healthcare policy. In the USA, the term is central to arguments about regulatory policy and government's role in the economy. The concept has gained increased importance in discussions about climate change and environmental protection globally.
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