Concept Clarification: Contestable Markets (1)

This is a first of a series of post discussing the concepts of contestable markets and contestability.

An analogy

Jesse likes to play street soccer with his friends. There’s a street court in the neighbourhood that they always go to. It’s surrounded by a fence that’s 10 metres tall. Because Jesse’s dad is friends with the town council manager, he gets priority to the keys. Other kids can’t come in and play with them.

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Defining Market Failure

how do you define market failure? if i were to say that market failure refers to the free market being unable to achieve economic(allocative and productive) efficiency in the absence of govt intervention then for the case of income inequality, is it considered a market failure? (given that the market does allocate resources efficiently except that it isn’t a satisfactory allocation. :/

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Get What You Want

With the A Levels around the corner, I’ll be spending the next couple of weeks churning out free high quality content for you. Yes, you, my loyal reader. In the past few months, I have been sharpening my edge at NIE. Now, I have quite a few new tricks up my sleeve. I want to help you maximise your learning and revision time.

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