Tuesday, September 29, 2009

Unit 1: Government intervention in the mp3 player market

An interesting story from the BBC highlighting market failure in the mp3 player market and a possible EU response

http://news.bbc.co.uk/1/hi/business/8279348.stm

a) What examples of information failure are there in the article?
b) What examples of negative externalities are there in the article?
c) How successful do you think the EU proposal would be in reducing the market failure?

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