The first is the existence of market imperfections.

This is not necessarily the most important form of market imperfection, but it is a relatively simple case to examine initially.

From this analysis, one can see whether it is possible for tax policy to be employed to offset the existence of market imperfections.

Again, this demonstrates how market imperfections may change the conclusions.

In theory, at least, it may be better to let two market imperfections cancel each other out rather than making an effort to fix either one.

In addition to financial market imperfections, legal restrictions can also hinder financial integration.

Power producers and marketers, especially companies like Enron, make money by exploiting market imperfections.

In retrospect, the severity of the 1987 crash reflected market imperfections more than economic realities.

In the absence of market imperfections, approaches (2) and (3) would be equal.

Liberals, who tend to believe that government must step in to protect people from market imperfections, will likely see more of them.