According to some economists asset price bubbles are outcomes of market imperfections or deviations from the ideal of perfectly competitive markets.

According to some economists asset price bubbles are outcomes of market imperfections

or deviations from the ideal of perfectly competitive markets. What is their argument?

Explain by giving two examples of market imperfections; illustrate by relating the

argument to the bubble episodes or banking crises covered in class. (Note: this question is

not about government induced market distortions.)