[zctkiahd] Market failures of competition

Economic competition induces cutting corners to decrease costs and increase profits.  This results in an abundance of shoddy products and services.

Is the market still acting efficiently in this case?  If not, exactly where are the market failures?

Perhaps imperfect information: the producer knows better than the consumer where the corners were cut.  But the market will naturally evolve signalling mechanisms. For example, this could be mitigated by transparency, especially among producers seeking to differentiate their product as one with high quality, one that does not cut corners.  But transparency does not seem to be happening.

Market failures of monopolies and oligopolies might dominate, making it hard to isolate effects not caused by them.