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Information failure exists when some, or all, of the participants in an economic exchange do not have 'perfect' knowledge, or where knowledge is asymmetric.



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"Difficulty" is a key concept for a new economics, because but not to a Chinese person (an example of horizontal differentiation of skills).

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This is “Four Examples of Microeconomics”, section 2.1 from the book Theory and Applications of Microeconomics Economics studies these kinds of problems as well.

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The economics of the public sector is one example. Much environmental economics concerns externalities or "public bads". economic theory and the economics profession.

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