Reciprocal solutions for correcting market failures

The situations of general sociability, respect, peace, and honesty could not be obtained by contracts of mutual agreement and exchange alone because of impossibilities and costs of constraining people and concerning information in a broad sense (plus the very basic fact that sentiments are important per se and cannot be bought). In the case of honesty limiting deceit and fraud, this impossibility of a correct contract is due to asymmetrical information. For general respect of people and property, this agreement would be an overall contract involving everyone (akin to the kind envisioned by Thomas Hobbes). However, such a sufficient actual contract is not possible because of costs and impossibilities in information, communication, contact, discussion, transaction, and writing the contract in sufficient detail. Such limitations to exchanges or agreements have many other occurrences. They include what is called “market failures” and extend more generally to agreement failures. Their causes are impossibilities or costs in the domains of information, imagining possible events, writing sufficiently detailed contracts, and, for implementing the contract, checking, monitoring, constraining as required, and in particular specifically excluding a person from a benefit that comes along with other advantages or that occurs jointly for several people. These “failures” are faced in a number of ways.