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Many markets work best with little or no outside interference. But others - especially those subject to big 'externalities' - need a helping hand.
Eric Maskin
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Interpretation

What this quote means

Markets can function independently, but some require external assistance to mitigate negative impacts.

In this quote, Eric Maskin emphasizes the dual nature of markets, indicating that while many operate efficiently on their own, certain markets, especially those affected by significant external factors, may struggle without intervention. This intervention is necessary to ensure fairness and to address issues that may arise from externalities, such as pollution or economic inequality, that can distort market outcomes.

Themes

MarketsExternalitiesInterventionEconomicsEfficiency

In practice

Example use cases

Referencing this quote during a lecture on market dynamics.

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