> Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market...In traditional microeconomics, this is shown as a steady state disequilibrium in which the quantity supplied does not equal the quantity demanded.
GP claimed there are demands not being met, because suppliers make more money selling to a "virtual customer that's an average of all customers across all characteristics." If that's correct, arguably it is a market failure, and that's consistent with those suppliers making lots of money selling to that average customer.
It seems to me it’s more like cases where poor infrastructure prevents distribution, or excessive regulation obstructs trade, preventing vendors and purchasers from linking up. That’s a problem on both sides. It’s an actual failure of the market itself.