Markets and Market Failures

This course provides further analyses of microeconomic concepts and problems. The course analyses different market structures, and gives an introduction to game theory with applications to industrial organization. It also provides an introduction to the theory of microeconomic efficiency, including analyses of different forms of market failures.

Knowledge

You learn

• definitions of key concepts in market economics, welfare theory, industrial organization and game theory
• the conditions under which an unregulated market economy is efficient
• economic consequences of market power and environmental pollution
• how competition policies and environmental policies can improve the functioning of the economy
• how game theory can be applied to analyze markets with competition between few firms

Skills

You should

• be able to explain different forms of market competition, economic efficiency, externalities, and public goods
• analyze price formation in markets with different forms of competition
• evaluate the extent to which the price formation contributes to economic efficiency
• explain how market failures can be corrected through economic policies
• analyze specific issues using graphical and mathematical analysis

General Competense

You should be able to

• follow economic reasoning related to the course in the public debate and professional reports

4 hours of lectures per week and 2 hours of exercise every other week during the teaching period. The course has compulsory activity. Specific requirements will be announced at the beginning of the term.