Role of Government in Information Provision

    0
    75

    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

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here