Topic:

  • Market Failure

Question:

  • “What factors have lead to market failure and the decline of journalism?”
  • “How has market failure lead to the decline of journalism?”

Slides:

  1. intro
  2. (Play the clip)
  3. The players: news outlets vs web giants
  4. advantage: web
  • both comparative and absolute advantage
  • creation of oligopolies and the “walled garden”
  1. types of market failure
  • focus on negative externalities
  1. externalities - social cost of hypertargetting
  2. failure by traditional media to internalize
  3. Summary
  • explain the meaning of absolute advantage and comparative advantage
  • see how comparative advantage explains the gains from trade
  • apply the theory of comparative advantage to everyday life and national policy
  • explain what an externality is
  • see why externalities can make market outcomes inefficient
  • examine how people can sometimes solve the problem of externalities on their own
  • consider why private solutions to externalities sometimes do not work