- 3 Market Failures 382
Market Power 383
Externalities 383
Non-Rivalrous and Non-Excludable Goods 386
Asymmetric Information 390
Summary 391 - 4 Broader Social Goals 393
Income Distribution 393
Preferences for Public Provision 394
Protecting Individuals from Others 395
Paternalism 395
Social Responsibility 396
A General Principle 396 - 5 Government Intervention 396
The Tools of Government Intervention 397
The Costs of Government Intervention 398
Government Failure 399
How Much Should Government Intervene? 401
Summary 402