Market failures such as lack of market-underpinning institutions have been the cause of markets malfunction, especially in a way that excludes the poor. Market failures are viewed as the lack of facilitating structures and key exchange mechanisms that cause business malfunction (Fligstein 2001). In this study, we define market failures as the failure of a more or less idealized set of price-market institutions to sustain "desirable" activities or to impede "undesirable" activities. In the case of microfinance, market failures such as lack of available credit to the poor reflects the non-inclusiveness of markets (Mendoza 2008), which represents the inability to sustain desirable activities.
展开▼
