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How does micro explain the following real-world market example? Kindly help.
This was a real market in the US in the 90s.
Telemarketing in the 90s. You had the telemarketers - Sellers. And, the advertisers whose goods were pushed - Buyers. Market appeared stable. But, in the background, one important fact. The sellers were selling something - Calls to Consumers - that was extracted from consumers without their consent. In other words, the sellers were selling a product derivative of this third party coercion. This third party - people at large - used the democratic system to force a legal change in the market. They said "no calls without consent!". And, within a very short period of time, almost the entire US population signed up for the Do No Call list, and the telemarketing industry collapsed overnight. You can see the same pattern in historical markets of slavery. Where does this fact pattern fall into micro theory? In other words, within which framework(s) does micro discuss this Risk of Market Failure?
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