How Advances in Technology Keep Reducing Interventionist Policy Rationales
Posted: 25 Aug 2017
Date Written: July 28, 2015
Rationales for government interventions in the market are typically based on theories of market failure set within a framework of fixed private-sector practices and technologies. However, continuous technological progress and entrepreneurial innovation are eroding the theoretical foundations of these policies, making them increasingly obsolete. This paper describes the four pillars of market failure doctrine and provides examples of how the market is using technology to solve problems previously considered to necessitate government intervention.
Keywords: technology, policy, property rights, market failure, information
JEL Classification: O33, H80
Suggested Citation: Suggested Citation