But this is not a market failure so much as it is the result of crony capitalism.

FORBES: The Ill Wind of Gainful Employment

But note that lock-in is inefficient (that is, it is a kind of market failure) only if the inferior product survives despite the fact that the benefits of switching would exceed the costs.

ECONOMIST: Economics Focus: Lock and key | The

Western firms grumble about their failure to turn their stakes in China Inc into a foothold in the Chinese market, but not too loudly, so that they do not annoy the government.

ECONOMIST: Buying a stake in China Inc is no shortcut to market share

The "market failure" that resulted in insufficient competition in a given industrial sector may have been lamentable, but through hard-won experience we have learned that the antitrust or regulatory responses often amounted to a "political failure" that was worse thwarting entrepreneurship and the emergence of new business models and often resulting in higher prices for consumers.

WSJ: Book Review: Captive Audience