Types of market failure GapFill

Public goods such as defence, lighthouses and flood control systems possess two distinct characteristics of   rivalrynon-exclusivityexcludabilitynon-diminishability and non-rivalry in  production consumptionmarket demand. Consumption by any additional user does not   increasereducesustainbenefit from the amount of the good available to others. Non-exclusivity means that we cannot separate payers from  consumersgovernmentnon-payersfirms. Thus there is a  bad-free-public-good- rider problem. The  marginalexternaldirectprivate cost of an additional consumer is zero.   PublicInformationPrivateNegative gaps occur when either   consumersgovernmentthe publicfirms or sellers have incomplete, uncertain or inaccurate information.  It is sometimes called information  waiverperfectionsymmetryasymmetry.