Regulation & Government Intervention in Markets with Dr. Matthew Oliver
The founding principle of free-market economics is that markets are "efficient" all by themselves. That is, they allocate goods and services in a way that maximizes benefits and minimizes costs, without the need for government intervention.
However, it turns out this is only partly true. In reality, a market allocation is only truly efficient if several important conditions are met, and no market exists that meets all of them.
We'll talk about what those conditions are, with examples of when each of them breaks down. And, we'll explain why such failures of markets to achieve efficiency justifies regulation and government intervention, even in a free-market economy.