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Poor Information: Market Failure

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Provide an example of how poor information resulted in a market failure. Describe how could the failure have been avoided with better quality information on the market.

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This posting gives you a step-by-step explanation of how poor information led to market failure. The response also contains the sources used.

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An example of how poor information resulted in market failure is that of Eastman Kodak. The key market information that Kodak received but did not analyse and understand was the rise of digital camera. This situation is also called myopia. Kodak was so blinded by its success with film cameras that it could not see the rise and importance of digital technologies (a). The data was there for Kodak to see but the information was poor. The market information that Kodak missed was that digital cameras were preferred because ...

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