COMPETITION AND MARKET FAILURE

ECO3CMF

2020

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. Using a mathematical approach, we will cover topics including general equilibrium, welfare economics and market failure, public goods and externalities, risk and decision theory, information asymmetry and contracts, and monopoly and market structure. You will build your technical expertise and understanding of important economic concepts through lecture examples and tutorial problem sets, providing you 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 (Pre 2022)

Credit points: 15

Subject Co-ordinator: Buly Cardak

Available to Study Abroad/Exchange Students: Yes

Subject year level: Year Level 3 - UG

Exchange Students: No

Available as Elective: No

Learning Activities: N/A

Capstone subject: No

Subject particulars

Subject rules

Prerequisites: ECO2CFC OR ECO2PPA OR ECO2MIT

Co-requisites: N/A

Incompatible subjects: ECO3PPB

Equivalent subjects: N/A

Quota Management Strategy: N/A

Quota-conditions or rules: N/A

Special conditions: N/A

Minimum credit point requirement: N/A

Assumed knowledge: N/A

Learning resources

Microeconomics with Calculus

Resource Type: Book

Resource Requirement: Recommended

Author: Jeffrey M. Perloff

Year: N/A

Edition/Volume: 4th edition

Publisher: PEARSON

ISBN: N/A

Chapter/article title: N/A

Chapter/issue: N/A

URL: N/A

Other description: N/A

Source location: N/A

Career Ready

Career-focused: No

Work-based learning: No

Self sourced or Uni sourced: N/A

Entire subject or partial subject: N/A

Total hours/days required: N/A

Location of WBL activity (region): N/A

WBL addtional requirements: N/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

INQUIRY AND ANALYSIS - Creativity and Innovation

INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving

INQUIRY AND ANALYSIS - Research and Evidence-Based Inquiry

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.

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.

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

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.

Melbourne (Bundoora), 2020, Semester 1, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information: N/A

Subject Instance Co-ordinator: Buly Cardak

Class requirements

LectureWeek: 10 - 22
One 2.00 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

TutorialWeek: 11 - 22
One 1.00 hour tutorial per week on weekdays during the day from week 11 to week 22 and delivered via face-to-face.

Assessments

Assessment element	Comments	Category	Contribution	Hurdle	%	ILO*
One 1 hour mid semester examEquivalent to 1000 words	N/A	N/A	N/A	No	20	SILO1, SILO2
One 2 hour final examEquivalent to 2000 words	N/A	N/A	N/A	No	50	SILO1, SILO2, SILO3, SILO4
Tutorial assessments (500 word equivalent)	N/A	N/A	N/A	No	10	SILO1, SILO2, SILO3, SILO4
Assignment (1000 words)	N/A	N/A	N/A	No	20	SILO3, SILO4