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Discover Ludwig"market failure" is correct and can be used in written English.
It is used to describe a situation in which the free market does not efficiently allocate goods and services, often resulting in a suboptimal outcome. For example, "The recent increase in inequality is attributed to market failure, as the rich get richer and the poor get poorer."
Dictionary
market failure
noun
A situation in which the allocation of goods and services by a free market is not efficient
Exact(60)
"There is market failure.
It was a colossal market failure.
So there is no market failure".
"It's a complete market failure.
It's all about market failure.
China can ill afford this market failure.
Instead it is a market failure.
There is a market failure here.
Wales has seen market failure writ large".
"That's not market failure," Mr. Hollobone said.
A market failure of a sort.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com