MARKET FAILURE
The concept of market failure in policy analysis comes from the application of the basic market model in economics, which describes the dynamic relationship between producers and consumers. Before an analysis of market failure, it is important to understand the key assumptions of the market model[1] in order to identify how markets can fail or become inefficient in certain situations. Therefore, in terms of policy analysis, instances where markets fail (once identified) immediately cause us to think about remedies for those failures so that the market can function again as normal. Thus, market failure is a useful concept to consider regarding bus lanes because it presents rationales for government action in areas of concern.[2]