About this course: Perfect markets achieve efficiency: maximizing total surplus generated. But real markets are imperfect. In this course we will explore a set of market imperfections to understand why they fail and to explore possible remedies including as antitrust policy, regulation, government intervention. Examples are taken from everyday life, from goods and services that we all purchase and use. We will apply the theory to current events and policy debates through weekly exercises. These will empower you to be an educated, critical thinker who can understand, analyze and evaluate market outcomes.

Created by: University of Pennsylvania

Taught by: Rebecca Stein, Senior Lecturer
Economics

Language	English, Subtitles: Mongolian
How To Pass	Pass all graded assignments to complete the course.
User Ratings	4.8 stars Average User Rating 4.8See what learners said

Syllabus

WEEK 1

Costs and Profits + Perfect Competition

In the first part of the course we learnt that if we allow market forces to work we reach an efficient outcome: the maximum benefit that can be generated by a market. The second part of the course explores cases where the markets fail to accomplish our goals. ...

20 videos

Graded: 1.1: Costs and Profits

Graded: 1.2: Perfect Competition: Definition and Output

Graded: 1.3: Perfect Competition: Implications for Efficiency

WEEK 2

Monopoly

A monopoly is a case where there is only one firm in the market. We will define and model this case and explain why market power is good for the firm, bad for consumers. We will also show that society as a whole suffers from the lack of competition.

13 videos

Graded: 2.1: Monopoly definition

Graded: 2.2: Monopoly vs. Perfect Competition Numerical example

WEEK 3

Monopoly Continued

Monopolies come in various types: one price monopoly, natural monopoly, price discrimination and monopolistic competition. This week we will expand the basic monopoly model to cover these cases and then explore market outcomes in each case. We will also discus...

14 videos

Graded: 3.1: Natural Monopoly

Graded: 3.2: Price Discriminating Monopoly

Graded: 3.3 Monopolistic Competition

WEEK 4

Externalities + Public Goods

Two classic cases of market failure will be defined and explored: externalities and public goods. We will define each case, demonstrate why the market fails to provide the efficient outcome and suggest interventions through either marked design or regulation.

20 videos

Graded: 4.1: Externalities

Graded: 4.2: Solutions to Externalities

Graded: 4.3: Public Goods

Graded: 4.4: Solutions to Public Goods

WEEK 5

Asymetric Information and Inequlity

Up to this point we assumed that there is full information in the market. We are now ready to relax this assumption as we introduce the concepts of moral hazard and adverse selection. We learn that asymmetric information may lead to market failure and we discu...

10 videos

Graded: 5.1: Asymmetric Information

Graded: 5.2: Poverty and Inequality

Graded: Final Exam

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University of Pennsylvania

The University of Pennsylvania (commonly referred to as Penn) is a private university, located in Philadelphia, Pennsylvania, United States. A member of the Ivy League, Penn is the fourth-oldest institution of higher education in the United States, and considers itself to be the first university in the United States with both undergraduate and graduate studies.

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