COMPETITION, MARKET FAILURE AND GOVERNMENT

ECO3CMF

2015

Credit points: 15

Subject outline

This subject complements Consumers, Firms and Competition. Students completing both subjects will have a thorough grounding in markets, indivual behaviour and government responses to a range of market failures. Topics include general equilibrium, welfare economics and market failure, public goods and externalities, risk and decision theory, information asymmetry and contracts, and monopoly.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorBuly Cardak

Available to Study Abroad StudentsYes

Subject year levelYear Level 3 - UG

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites ECO2CFC or ECO2MIT or ECO2PPA

Co-requisitesN/A

Incompatible subjects ECO3PPB

Equivalent subjectsN/A

Special conditionsN/A

Learning resources

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsMicroeconomics with Calculus. 2nd edition (TBC)PreliminaryBrian R. Binger and Elizabeth HoffmanADDISON WESLEY
ReadingsMicroeconomics with Calculus. 3rd edition (TBC)RecommendedJeffrey M. PerloffPEARSON

Graduate capabilities & intended learning outcomes

01. Solve computational problems, with mathematical and graphical techniques, relating to partial and general equilibrium using the models of consumer choice, pure exchange and exchange with production.

Activities:
Lectures, tutorials, prescribed reading, class discussion
Related graduate capabilities and elements:
Writing (Writing)
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)
Inquiry/ Research (Inquiry/ Research)

02. Solve problems, with mathematical and graphical techniques, using extensions of the competitive model to factor markets, markets over time and markets featuring uncertainty and explain qualitative features of these settings and the respective equilibria.

Activities:
Lectures, tutorials, prescribed reading, class discussion
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)
Writing (Writing)
Critical Thinking (Critical Thinking)
Inquiry/ Research (Inquiry/ Research)

03. Write concise explanations and critical evaluations of the concepts of competitive equilibrium, Pareto efficiency and the two welfare theorems of economics.

Activities:
Lectures, tutorials, prescribed reading, class discussion
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)
Inquiry/ Research (Inquiry/ Research)
Critical Thinking (Critical Thinking)

04. Write concise explanations of the nature, consequences and policy responses to various forms of market failure (i.e. monopoly, externalities and public goods, asymmetric information) and solve computational problems relating to these market failures using mathematical and graphical techniques.

Activities:
Lectures, tutorials, prescribed reading, class discussion
Related graduate capabilities and elements:
Writing (Writing)
Critical Thinking (Critical Thinking)
Creative Problem-solving (Creative Problem-solving)
Inquiry/ Research (Inquiry/ Research)

Subject options

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Start date between: and    Key dates

Melbourne, 2015, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorBuly Cardak

Class requirements

Tutorial Week: 10 - 22
One 1.0 hours tutorial per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Lecture Week: 10 - 22
One 2.0 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
0ne one hour mid semester exam20 01, 02
One two hour final exam70 01, 02, 03, 04
tutorial assessments10 01, 02, 03, 04