Market Failure and Financial Services – A Case Study of Bounded Rationality in the Market for Superannuation Products

Macquarie Journal of Business Law, Vol. 4, p. 49, 2007

28 Pages Posted: 9 Feb 2011

See all articles by Rhys Bollen

Rhys Bollen

Monash University - Faculty of Law

Date Written: June 1, 2007

Abstract

Like most Western governments, the Australian Government has adopted a free market approach to the financial services industry, relying on the market to resolve which financial products and services are produced and consumed, and at what price. However, a consumer protection regime exists in recognition of potential market failures around information asymmetry and market power. This article argues that market failures appear to persist despite this disclosure-centric regime and demonstrates this using recent fees research. It goes on to discuss the reasons for this market failure and some possible solutions.

Suggested Citation

Bollen, Rhys A., Market Failure and Financial Services – A Case Study of Bounded Rationality in the Market for Superannuation Products (June 1, 2007). Macquarie Journal of Business Law, Vol. 4, p. 49, 2007, Available at SSRN: https://ssrn.com/abstract=1756696

Rhys A. Bollen (Contact Author)

Monash University - Faculty of Law ( email )

Wellington Road
Clayton, Victoria 3800
Australia

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