Role of Government in Information Provision


    Role of Government in Information Provision

    • Seeing as information failure is one of the causes of market failure, it seems logical to expect governments to provide information in order to correct market failure
    • This is mainly with respect to the provision of demerit goods
    • Governments have been keen to provide information on social costs as well as private costs involved in a product’s consumption
    • In most cases, such information has been accompanied by regulations and laws


    • The government also ensures, through the Advertising Standards Agency, that the advertisers are truthful about the claims made about their products – particularly health and beauty
    • Via this, it is hoped that consumers will receive truthful and impartial information


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