If markets are not ‘Pareto-optimal’, then everyone could be better off as a result of public policies that correct the market failure in question.14 However, as we will see in Chapter 8, a body of economics referred to as Public Choice theory, advocated by Nobel Prize winner James Buchanan (1919–2013), later argued that as government failures are even worse than market failures (due to corruption and capture), so the correction of market failures by bureaucrats might make things even worse.
