COMPETITION, MARKET FAILURE AND GOVERNMENT
ECO3CMF
2016
Credit points: 15
Subject outline
In Competition, Market Failure and Government, you will study advanced models of markets, individual behaviour and government responses to a range of market failures. Topics you will cover include general equilibrium, welfare economics and market failure, public goods and externalities, risk and decision theory, information asymmetry and contracts,and monopoly and market structure. Through lecture examples and tutorial problem sets, you will gain experience in solving models and problems that explain equilibrium in a diverse range of settings, accounting for individual behaviour and social welfare. This subject will prepare you to analyse policy problems facing individuals, firms and governments.
School: La Trobe Business School
Credit points: 15
Subject Co-ordinator: Buly Cardak
Available to Study Abroad Students: Yes
Subject year level: Year Level 3 - UG
Exchange Students: Yes
Subject particulars
Subject rules
Prerequisites: ECO2CFC or ECO2MIT or ECO2PPA
Co-requisites: N/A
Incompatible subjects: ECO3PPB
Equivalent subjects: N/A
Special conditions: N/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Microeconomics with Calculus. 3rd edition (TBC) | Recommended | Jeffrey M. Perloff | PEARSON |
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:
- Inquiry/ Research(Inquiry/ Research)
- Critical Thinking(Critical Thinking)
- Creative Problem-solving(Creative Problem-solving)
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:
- Inquiry/ Research(Inquiry/ Research)
- Critical Thinking(Critical Thinking)
- Creative Problem-solving(Creative Problem-solving)
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:
- Writing(Writing)
- Inquiry/ Research(Inquiry/ Research)
- Critical Thinking(Critical Thinking)
- Creative Problem-solving(Creative Problem-solving)
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)
- Inquiry/ Research(Inquiry/ Research)
- Critical Thinking(Critical Thinking)
- Creative Problem-solving(Creative Problem-solving)
Melbourne, 2016, Semester 1, Day
Overview
Online enrolment: Yes
Maximum enrolment size: N/A
Enrolment information:
Subject Instance Co-ordinator: Buly Cardak
Class requirements
TutorialWeek: 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.
LectureWeek: 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 element | Comments | % | ILO* |
|---|---|---|---|
| 0ne 1 hour mid semester exam | 20 | 01, 02 | |
| One 2 hour final exam | 50 | 01, 02, 03, 04 | |
| Tutorial assessments | 10 | 01, 02, 03, 04 | |
| Assignment | 20 | 03, 04 |