If Dvorak s keyboard is not actually superior, then there is no classic example of market failure. Sometimes market favor economic versus technological superiority. There is little incentive to anticipate future problems caused by being locked-in to inferior technology, but there is no reason to assume a faulty initial market decision. This may be argued for years, but the information will not get any clearer. Plus, the lack of other examples of market failure could mean that market failure is so insignificant or rare that we may not notice it academically.
Market failure is definitely possible.
If switching costs are greater than the benefits, or if synchronization capacities are limited, then no switch will take place. The free flow of information is what keeps society from seeing market failure more often. The changing flow of information and the changing structure of market participants keeps economists on there feet. The University of Oklahoma explicitly disclaims any legal liability for the contents of this page or information accessible from this page. Web pages are provided as a privilege to OU students to enhance their life long learning experience, and the opinions expressed herein are not necessarily those of the institution or its student body.