A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Market imperfections or failures have several causes: market power in monopolies and oligopolies, principal–agent problems, information asymmetries, externalities, corruption and collusion, and public goods. Imperfect information can distort market outcomes and lead to inefficiencies. Imperfect information describes a state where someone has not all the information required to make a rational decision. Externalities are factors of production for which there is no market price. The beneficiary uses this factor without paying for it and, while doing so, harms someone else in the case of negative production externalities. Collusion and corruption are two different phenomena of market imperfections. Both are ways to prevent the results from otherwise perfect competition from the supply side. Collusion is the illegal act of producers to meet and take coordinated action. The first step is to exchange information about prices and quantities. Corruption is widespread in construction.
Market imperfections or failures have several causes: market power in monopolies and oligopolies, principal–agent problems, information asymmetries, externalities, corruption and collusion, and public goods. Imperfect information can distort market outcomes and lead to inefficiencies. Imperfect information describes a state where someone has not all the information required to make a rational decision. Externalities are factors of production for which there is no market price. The beneficiary uses this factor without paying for it and, while doing so, harms someone else in the case of negative production externalities. Collusion and corruption are two different phenomena of market imperfections. Both are ways to prevent the results from otherwise perfect competition from the supply side. Collusion is the illegal act of producers to meet and take coordinated action. The first step is to exchange information about prices and quantities. Corruption is widespread in construction.
Market Imperfections
Brockmann, Christian (author)
Construction Microeconomics ; 329-342
2023-02-28
14 pages
Article/Chapter (Book)
Electronic Resource
English
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