Market failure exists when the competitive outcome of markets is not
efficient from the point of view of the economy as a whole. This is
usually because the benefits that the market confers on individuals or
firms carrying out a particular activity diverge from the benefits to
society as a whole.
Private health insurance
Laura Rolfe has always had private health insurance, because her mum
always had it and she believed that “it’s just what you do”.
The 29-year-old account manager convinced her husband, Jason, that it
was something he needed to have as well, fearing he might be left in
the lurch if illness or injury struck.
“He didn’t have it when we first got together,” Rolfe says.
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