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 economics and game theory
• the conditions under which an unregulated market economy is efficient
• economic consequences of market power, public goods and external effects, and how economic policy can be used to improve the functioning of the markets
• how game theory can be applied to analyze markets with competition between few firms

Skills

You should be able to

• 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, and 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 competence

You should be able to

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

2 hours of lectures every week. Information about tutorials and compulsory activity will be announced at the beginning of the term.