One case are public goods like air or oceans that can be used by everyone without paying something for it, because no one is taking money for the use or pollution of it. Theoretically the free use of a forest by bikers, hikers etc. could also be considered.

The second (similar) case are negative external effects that also concern individuals or groups. In this case the negative external effects of economic activity by a producer or a consumer does produce external costs. As a simple example: a factory of a product would not have to pay for the environmental damage caused by air, water or soil pollution. Then the people who would be concerned by the pollution would have additional costs.

A global example that concerns the whole of humanity is the climate crisis with the root cause of burning fossil fuels in vast amounts for more than 150 years. We are all concerned.

For further information and facts here some possible links, e.g. 4 in English and 4 in German:

- https://www.globalmediajournal.com/open-access/market-failure-understanding-the-limits-of-free-markets.pdf

- https://www.oxfordscholastica.com/blog/business-economics-articles/what-are-market-failures/

- https://studylatam.com/market-failure-causes-consequences-and-solutions/

- https://www.investopedia.com/terms/m/marketfailure.asp

- https://www.bwl-lexikon.de/wiki/marktversagen/

- https://geschaeftswelt-heute.de/marktversagen/

- https://wirtschaftsvision.de/marktversagen-was-ist-das-marktversagen/

- https://www.studysmarter.de/studium/bwl/mikrooekonomie-studium/marktversagen/

(last visit: 31. July 2025).