Reasons for market failure include

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Market failure can occur for various reasons, including the existence of common property resources, which can lead to overuse or depletion (the tragedy of the commons); the presence of public goods, which are non-excludable and non-rivalrous, leading to underproduction or no production in a purely private market; and the existence of externalities, where the full cost or benefit of a product or service is not reflected in its market price, leading to overproduction or underproduction. All these factors can prevent markets from efficiently allocating resources, hence they are all reasons for market failure.

Reasons for Market Failure Include