Market Failures and Economic Regulation
| Autor | Sara Graciela Bravo Loza - Johanna Stephany Cabezas Nazate - Josué Eduardo Rodríguez Carrillo - Giulianna Anahí Sghirla Ayala - Karla Daniela Valencia García |
| Cargo | Independent legal researcher - Independent legal researcher - Independent legal researcher - Independent legal researcher - Independent legal researcher (correspondent author) |
| Páginas | 90-138 |
Bravo, G.; et al. Market Failures and Economic Regulation
90
Revista Facultad de Jurisprudencia RFJ No.13 Junio 2023
Market Failures and Economic Regulation
Las Fallas de Mercado y la Regulación Económica
Sara Graciela Bravo Loza
Independent legal researcher
City: Quito
Country: Ecuador
Johanna Stephany Cabezas Nazate
Independent legal researcher
City: Quito
Country: Ecuador
Josué Eduardo Rodríguez Carrillo
Independent legal researcher
City: Quito
Country: Ecuador
Giulianna Anahí Sghirla Ayala
Independent legal researcher
City: Quito
Country: Ecuador
Karla Daniela Valencia García
Independent legal researcher (correspondent author)
City: Quito
Country: Ecuador
Original Article (Miscellaneous)
RFJ, No. 13, 2023, pp. 90 -138, ISSN 2588-0837
ABSTRACT: A country’s economic dream is to build ideal
markets where suppliers and demanders honestly and
efficiently meet their needs with fair and balanced prices.
DOI 10.26807/rfj.vi.459
Bravo, G.; et al. Market Failures and Economic Regulation
91
Revista Facultad de Jurisprudencia RFJ No.13 Junio 2023
However, in reality, these types of markets are almost nil, since,
with the existence of Information asymmetries, the perspective
changes and from ideal markets, it changes to markets with
failures, since when there are gaps in data, figures, and others,
the participants in these markets do not synchronize with their
parts. Consequently, there is no perfection in their transactions,
and therefore, their activity and performance would not reach
the most convenient standards in the commercialization of
their goods or services since their decisions will not be the most
optimal. With market failures, the State, through its control
bodies, creates market rules and applies regulatory norms to
appeal to any type of failure committed in the market.
KEYWORDS: Legal system, economic theory, market failure,
regulation.
RESUMEN: El sueño económico de un país, es lograr construir
mercados ideales, donde los oferentes y demandantes de manera
honesta y eficiente satisfagan sus necesidades con precios justos
y equilibrados, sin embargo, la realidad de cumplir con este
tipo de mercado ideal es muy difícil, ya que con la existencia
de simetrías de información, la perspectiva sobre los mercados
ideales cambia dando como resultado a los mercados con fallas,
por la presencia de datos vacíos, cifras alteradas, entre otros, los
partícipes de estos mercados no sincronizan con sus partes y
como secuela de esto no existe perfección en sus transacciones y
por ende su actividad y desempeño no alcanzaría los estándares
más convenientes en la comercialización de sus bienes o
servicios ya que sus decisiones no serán las “óptimas”. Con la
existencia de fallas en los mercados, el Estado por medio de
sus órganos de control crea reglas de mercado y aplica normas
regulatorias, para aplacar cualquier tipo de falla que se sete
cometiendo en el mercado.
Bravo, G.; et al. Market Failures and Economic Regulation
92
Revista Facultad de Jurisprudencia RFJ No.13 Junio 2023
PALABRAS CLAVE: Sistema jurídico, teoría económica, fallos
del mercado, regulación.
JEL CODE: K, K0
INTRODUCTION
As a theoretical approach to building models aimed
at facilitating analysis and economic governance, abstractions
have been proposed to capture the main characteristics of social
scenarios to contribute to the process of “social optimization”.
This type of engineering and social constructivism exercise,
for example, can be used to evaluate specific moments such as
commercial and economic exchange and, in a critical sense, to
reflect on how to make them happen as efficiently as possible.
It can lead to the study of the optimal allocation of resources,
inspired by the objective of satisfying human needs and
contribute to the theoretical construction of an ideal market,
where supply and demand are “proportional”, and no waste is
generated.
Furthermore, reflecting on this ideal market lucubration
will imply that the information necessary to carry out economic
exchanges is freely accessible. In other words, there should be
no exclusion, to the extent that both the consumer and the
producer “possess” the exact quantities and possibilities of
acquiring or sharing information and that the market process
itself is responsible for self-regulation to reach what is known
as the “equilibrium price”.
However, all these characterizations and assertions of
a perfect context of exchange or price system, without defects,
are based on ideas that could also be considered unrealistic.
Therefore, in the following lines, we will allude to other concepts
Para continuar leyendo
Solicita tu prueba