“Market failure” in the Transaction Cost Economics is a situation in which:a.Capital markets systematically underestimate the inherent level of risk present in the securitized debt obligations, ov

“Market failure” in the Transaction Cost Economics is a situation in which:

a.

Capital markets systematically underestimate the inherent level of risk present in the securitized debt obligations, overinvest in them, and thus cause a financial crisis

b.

There is a sharp drop (more than 5%) of the broad stock indices over the course of a single trading day on the New York Stock Exchange

c.

There is a willing buyer of a product, but the sellers’ industry is so fragmented that the price levels for their products remain too high, hence the transaction cannot go forward

d.

There is a willing seller of a product, there is a willing buyer of that product, the seller and the buyer can agree on price, but the threat of opportunistic behavior makes the transaction between them impossible