1. Beijing 16-year-old boy was bitten by cobra. He is critically ill and in urgent need of anticobra venom, but hospitals in Beijing generally don't have this serum. After his family and many media searched, he was told that many hospitals had run out. It was not until three days later that the serum arrived in Beijing from a hospital in Yunnan. Check the Catalogue of National Essential Drugs of the Ministry of Health, and the anticobra venom in antivenom is impressively listed. However, such incidents have happened many times.
2. Illegal businessmen in Lanxi County, Suihua City, Heilongjiang Province use fake seeds to pit farmers and harm farmers;
3. Zhang Xiaolei surrendered himself to the public security organ for illegal fund-raising;
4. Measures to deal with market failure:
For example, in 2007, the securities market was overheated, and the CSRC took measures such as raising stamp duty and speeding up the financing scale to cool the stock market. In 2008, in the bear market, it took measures such as reducing stamp duty and stopping the issuance of new shares. Not to mention the regulation of the real estate market and the second suite policy. In the ordinary way, in the face of the financial crisis, the Bank of China has repeatedly adjusted the reserve ratio and interest rate, which is a monetary policy and an increase of 4 trillion investment, which is a fiscal policy. In the face of some small-scale market failures caused by speculation, it is most effective to take severe restraint. For example, the price of mung bean garlic processed some time ago has increased.
Simply put, market failure refers to the inefficient or improper allocation of resources due to the failure of market mechanism to fully play its role. In the economic society, it is conditional for the whole economy to reach a general equilibrium and the resource allocation to reach a Pareto optimal state. These conditions include: the economic subject is completely rational, the information is complete, the market is completely competitive, and the behavior of the economic subject has no external influence. It is obviously unrealistic for a perfectly competitive market to meet these conditions, and when these conditions are not met, the optimal allocation of resources or Pareto optimal state can usually not be realized.
Second, the reasons for market failure
1. Monopoly: A certain degree (such as oligopoly) and complete monopoly on the market may make the allocation of resources inefficient, and the correction of this situation depends on the power of the government, mainly by intervening in the market structure and enterprise organizational structure to improve the economic efficiency of enterprises, which belongs to the government's industrial structure policy.
2. Information asymmetry: Because participants in economic activities have different information, some people can use the information to cheat, which will damage legitimate transactions. When people's worries about fraud seriously affect trading activities, the normal function of the market will be lost, and the function of the market to allocate resources will be invalid.
3. External influence: Market economic activities are based on reciprocal transactions, so people's interests in the market are essentially money-related interests. When people engage in such economic activities that require paying or getting money, they may also have some other influences on others, which may be beneficial or harmful to others.
4. Public goods: Public goods are goods that all members of society can enjoy. Strictly speaking, public goods are non-competitive and non-exclusive. Non-exclusiveness means that one person's enjoyment of public goods does not affect another person's enjoyment, and non-competitiveness means that the increase of consumers will not cause the increase of production costs.