IDEAS home Printed from https://ideas.repec.org/a/ovi/oviste/vxiiy2012i1p494-499.html
   My bibliography  Save this article

Information Assymetries as the Main Source of Market Failure Affecting the Consumer

Author

Listed:
  • Gheorghiu Gabriela

    („Ovidius” University of Constanta, Faculty of Economic Sciences)

Abstract

The reality of daily life gives us sufficient examples of situations in which individual decisions within free market do not automatically and warranted lead to a global economic optimum. Such a situation is denominated as “market failure”, both understood as “the failure of a more or less idealized system of price-market institutions to sustain “desirable” activities or to stop “undesirable” activities” [1], but also as any performance of the market which is considered less better than the best performance possible [2]. Specialized economic literature generally distinguishes four categories of market failures, namely: externalities, public goods, natural monopoly and information asymmetries. The present paper will focused on information asymmetries both from the point of view of generating causes and the effects involved on the consumers, and from the point of view of the possible solutions for rectifying them.

Suggested Citation

  • Gheorghiu Gabriela, 2013. "Information Assymetries as the Main Source of Market Failure Affecting the Consumer," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 494-499, May.
    • Handle: RePEc:ovi:oviste:v:xii:y:2012:i:1:p:494-499
    as

    Download full text from publisher

    File URL: http://stec.univ-ovidius.ro/html/anale/ENG/cuprins%20rezumate/volum2013p1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anonymous, 1949. "Council of Europe," International Organization, Cambridge University Press, vol. 3(4), pages 729-732, November.
    2. Anonymous, 1949. "Council of Europe," International Organization, Cambridge University Press, vol. 3(3), pages 551-552, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olivier Mesly & Hareesh Mavoori & Nicolas Huck, 2023. "The Role of Financial Spinning, Learning, and Predation in Market Failure," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 517-543, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Burciu Andreea & Ardelean Andreea, 2013. "Migration in the EU- Between Brain Drain and Cheap Workforce Transfer," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 158-163, May.
    2. Buºu Mihail & Cioacã Sorin, 2013. "An Application of the Kalman Filter for Market Studies," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 726-731, May.
    3. Ciobanu Dumitru & Vasilescu Maria, 2013. "Advantages and Disadvantages of Using Neural Networks for Predictions," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 444-449, May.
    4. Holban Dana – Elena, 2013. "Economic Issues in the Wind Energy Development at World and European Level," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 500-503, May.
    5. Ciobãnicã Mihaela - Lavinia, 2013. "Strategic Capacity Assessment Action at S.C. Hervis S.A. During the Crisis," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 741-745, May.
    6. ªeitan Silviu-Marius, 2013. "Administrative Perspectives Concerning the European Economic Relations," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 275-279, May.
    7. Cristian Elena Raluca & Bãrãgan Laura Georgeta & Moise Elena, 2013. "The Emigrant ”Identity” in the Current Global Context," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 473-477, May.
    8. Epure Marcel, 2013. "A Cultural Explanation for Japan’s Economic Performance, from the view Point of The General Power Theory," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 313-316, May.
    9. Lup?a-Tãtaru Dana Adriana & Lup?a-Tãtaru Florin Rãzvan, 2013. "Knowledge Management Evaluation. Comparative Study," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 549-552, May.
    10. Postolache (Males) Daniela, 2013. "Development of an Intelligent System Prototype Intended for Accounting in Forestry Entities," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 626-631, May.
    11. Sãveanu Cristina, 2013. "The Effects of Risk Events on the Efficiency of Financial Market," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 92-96, May.
    12. Mateescu Mihaela & Suba Gabriela, 2013. "Decision Support Tool to Testing and Trial Laboratories," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 559-567, May.
    13. Lazar Cristina & Muhcina Silvia & Muhcina Despina, 2013. "Cloud Computing for Small and Medium-Sized E-Commerce Businesses. An Overall Look on the Benefits and Risks of Cloud Computing in E- Commerce," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 541-544, May.
    14. Asalos Nicoleta & Trandafir Raluca Andreea, 2013. "The Evolution of Clusters and Competitiveness Poles in Romania and the Chances of Succcess of This Process," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 405-409, May.
    15. Negoescu Gheorghe & Negoescu Liliana Georgeta, 2013. "he Entrepreneurship, an Actual Challenge for the Young Graduates of Higher Education Institutions," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 573-578, May.
    16. Kicsi Rozalia Iuliana, 2013. "The Regionalism – Challenges on the Multilateral Trading System," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 49-54, May.
    17. Gheorghiu Gabriela & Fronea Ciprian Mihail & Brãiloiu Liviu, 2013. "Externalities, Public Goods and Natural Monopoly as Market Failures and Their Implications for the Consumer," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 489-493, May.
    18. Ciobanu Carmen Liliana, 2013. "Analysis of the Degree of Absorption of EU Funds, 2007-2013," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 170-174, May.
    19. Ma?cu Simona & Burlacu Valentin & Cojocaru Diana, 2013. "Harmonisation of Excise Duties on Energy Products and Electricity in Central and Eastern European Countries," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 330-335, May.
    20. Anghel Cristian & Rãdulescu Corina & Toader Rita, 2013. "Analysis Models of Local Development Stakeholders," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 281-286, May.

    More about this item

    Keywords

    market failure; consumer; information asymmetries;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ovi:oviste:v:xii:y:2012:i:1:p:494-499. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gheorghiu Gabriela (email available below). General contact details of provider: https://edirc.repec.org/data/feoviro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.