Editing Market failure (section)

===Austrian===
Some advocates of ''[[laissez-faire]]'' [[capitalism]], including many economists of the [[Austrian School]], argue that there is no such phenomenon as "market failure". [[Israel Kirzner]] states that, "Efficiency for a social system means the efficiency with which it permits its individual members to achieve their individual goals."<ref>{{cite book|author=Israel Kirzner|title=Market Theory and the Price System|url=https://archive.org/details/markettheorypric00kirz|url-access=limited|year=1963|publisher=D. Van Nostrand Company|location=Princeton. N.J.|page=[https://archive.org/details/markettheorypric00kirz/page/n46 35]|author-link=Israel Kirzner}}</ref> Inefficiency only arises when means are chosen by individuals that are inconsistent with their desired goals.<ref>{{cite journal|author=Roy E. Cordato|title=The Austrian Theory of Efficiency and the Role of Government|year=1980|journal=[[The Journal of Libertarian Studies]] |url=https://www.mises.org/journals/jls/4_4/4_4_6.pdf|volume=4|issue=4|pages=393–403 [396]}}</ref> This definition of efficiency differs from that of [[Pareto efficiency]], and forms the basis of the theoretical argument against the existence of market failures. However, providing that the conditions of the [[first welfare theorem]] are met, these two definitions agree, and give identical results. Austrians argue that the market tends to eliminate its inefficiencies through the process of [[entrepreneurship]] driven by the [[profit motive]]; something the government has great difficulty detecting, or correcting.<ref>{{cite journal|author=Roy E. Cordato|title=The Austrian Theory of Efficiency and the Role of Government|year=1980|journal=The Journal of Libertarian Studies|url=https://www.mises.org/journals/jls/4_4/4_4_6.pdf|volume=4|issue=4|pages=393–403}}</ref>