A Discussion Paper on Cybersecurity Policies

2017 ◽  
pp. 155-165
Author(s):  
Ayse Kok
Keyword(s):  
Government Regulation ◽  
Market Failure ◽  
Government Intervention ◽  
Main Argument ◽  
Market Failures ◽  
Discussion Paper

This chapter presents various reasons for the insufficiency of externalities in terms of the inference of market failure with regard to the field cybersecurity policy, which is claimed to be necessary for government intervention. The main argument of this chapter is that cybersecurity market failures are much smaller than initially assumed, and as a result, more harm might be done by trying to correct them through naïve government regulation.

The Role of Government in a Liberal Market Economy

2018 ◽  
pp. 53-61
Author(s):  
Claude Joseph
Keyword(s):  
Public Choice ◽  
Market Failure ◽  
Government Intervention ◽  
Rational Behavior ◽  
Market Failures ◽  
Role Of Government ◽  
Failure Theory ◽  
Theoretical Perspectives ◽  
The Government

This essay is a critical assessment of the market failure theory and public choice theory. While the market failure theory provides a justification for government intervention in the economy, the public choice theorists are very skeptical about the role of government as a corrector of market failures. Since government failures can be worse than market failures, the imperfections in the market process, they argue, do not necessarily call for government intervention. These two theoretical perspectives, notwithstanding their difference, do share something in common. Both assume that individuals are self-interested. This essay contends that a shift from rational self-interested behavior to bounded-rational behavior provides a less contested role for the government. With bounded-rational behavior, the state should no longer be viewed as a mere surrogate of the market, but as “a choice architect,” “an entrepreneur,” and “a manager of conflict.”

Market Failure, the Tragedy of the Commons, and Default Libertarianism in Contemporary Economics and Policy

2017 ◽  
Author(s):  
Mark Budolfson
Keyword(s):  
Public Policy ◽  
Twentieth Century ◽  
Market Failure ◽  
Government Intervention ◽  
Tragedy Of The Commons ◽  
Important Change ◽  
Individual Freedom ◽  
Market Failures ◽  
The Face ◽  
The Commons

Many political theorists take the phenomenon of market failure to show that arguments for libertarianism fail in a straightforward way. This chapter explains why the most common form of this objection depends on invalid reasoning, and why a more sophisticated examination of the relevant economics has led most contemporary economists and policy experts to a view that might be called Default Libertarianism, according to which the strong default for public policy—even in response to market failures—should be toward decentralized, pro-individual freedom policies that involve minimal government intervention in markets. Some experts (but by no means all) similarly believe that even in the face of substantial market failures, libertarian policies are generally best all things considered. This shift toward more libertarian policy represents an important change from the middle of the twentieth century. This chapter explains the structure of the arguments that have led to this shift.

Discontinuous Institutional Alternatives in the Context of Economy Deregulation

2004 ◽  
pp. 94-110 ◽  
Author(s):  
A. Shastitko
Keyword(s):  
Market Failure ◽  
Transaction Management ◽  
Market Failures ◽  
Relative Cost ◽  
State Participation

Various ways of state participation in the mechanisms of transaction management are considered in the article. Differences between compensation and elimination of the market failures are identified. Opportunities and risks of non-regulatory alternatives usage as a mean of market failure compensation are described. Based on classification of goods correlated to relative cost of their useful characteristics evaluation (search, experience, merit) questions of institutional alternatives in three areas (political, financial and commodity) are examined.

scholarly journals Problems of Overcoming Market Failures in the Context of Economic Crisis in the Euro Area

2014 ◽  
pp. 162-167
Author(s):  
A. Y. Pluiko
Keyword(s):  
Economic Development ◽  
Economic Crisis ◽  
Euro Area ◽  
Market Failure ◽  
World Market ◽  
Economic Governance ◽  
Market Failures ◽  
Single Currency ◽  
Poor Countries ◽  
Money Circulation

The article analyses the manifestations of a market failure problem revealed during the economic crisis in the euro area, namely business cycles, market inability to ensure money circulation and avoid inflation. It is shown that the cyclicity of economic development has revealed in various degrees of economic contraction and different rates of its recovery. These differences have been exacerbated by the new procyclical factors emerged from the transition to a single currency. As for money circulation the crisis has almost no impact on the single currency functioning: the euro has maintained its position on the world market and properly performed money functions in the domestic. The goal to achieve economic development without inflation in the euro area generally has been solved successfully by the European Central Bank (ECB). However, due to the fact that the ECB in its monetary policy does not pay sufficient attention to the increased inflation in small and relatively poor countries, the crisis has been more acute in them than in large countries with low inflation. The goals of ensuring money circulation and avoiding inflation can be settled more effectively in the euro area in case of more tight coherence in economic policy and strengthening of supranational mechanisms of economic governance.

Market Power and Market Failure The Decline of the European Fertilizer Industry and the Expansion of Norsk Hydro

2008 ◽  
Vol 9 (1) ◽  
pp. 70-95 ◽  
Author(s):  
Einar Lie
Keyword(s):  
Western Europe ◽  
Market Failure ◽  
Cost Structure ◽  
Organizational Capabilities ◽  
Main Argument ◽  
Norsk Hydro ◽  
Fertilizer Industry ◽  
Market Shares ◽  
The Stability

During the 1980s, the fertilizer industry in Western Europe underwent some radical changes. Reduced profitability and overcapacity forced a number of smaller producers to close down, and most of the major firms in the business either withdrew from the market or reduced their capacity. The exception was the Norwegian industrial conglomerate Norsk Hydro, which expanded rapidly and established itself as the largest producer in Europe and later globally.The article discusses the strategy behind Hydro's expansion in relation to the changing structure of the fertilizer market, which historically was characterized by tacit and explicit agreements on prices and market shares between the major producers. Hydro's strategy and growth are analyzed in relation to some theoretical contributions from the study of transnationalisation of enterprises. A main argument is that Hydro's expansion was not driven by advantages in cost structure or organizational capabilities, nor did the expansion create such advantages. The Norwegian company expanded in foreignmarkets partly because it had less to lose from a counterattack than competitors in largermarkets and partly because of strategic disadvantages. Contrary to most of its large European competitors, Hydro failed to identify the long term threats to the stability and profitability of the Western European market.

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