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Barnett Prize Matthew Bradfield There are some economists who would claim that smoking is a perfect example of market failure. The definition of market failure is very simple; it is when the market mechanism fails to allocate resources efficiently in one or more of the following four fronts: Social Efficiency; Allocative Efficiency; Technical Efficiency; Productive Efficiency. Smoking is an example of market failure because it fails to allocate resources in a socially efficient way. When someone buys a pack of cigarettes they do not take into consideration the effects of other people's health because of second hand smoke or the fact that they are taking up valuable resources from the national health services when the majority of people who smoke for a long time end up needing medical major medical help, which is paid for by the taxes of the society that the smoker lives in. this shows that eth resources are...

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