COMPETITION AND MARKET FAILURE

ECO3CMF

2021

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.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorBuly Cardak

Available to Study Abroad/Exchange StudentsYes

Subject year levelYear Level 3 - UG

Available as ElectiveNo

Learning ActivitiesLectures, tutorials, prescribed reading, class discussion

Capstone subjectNo

Subject particulars

Subject rules

PrerequisitesECO2CFC OR ECO2PPA OR ECO2MIT

Co-requisitesN/A

Incompatible subjectsECO3PPB

Equivalent subjectsN/A

Quota Management StrategyN/A

Quota-conditions or rulesN/A

Special conditionsN/A

Minimum credit point requirementN/A

Assumed knowledgeN/A

Readings

Microeconomics with Calculus

Resource TypeRecommended

Resource RequirementN/A

AuthorJeffrey M. Perloff

YearN/A

Edition/Volume4th edition

PublisherPEARSON

ISBNN/A

Chapter/article titleN/A

Chapter/issueN/A

URLN/A

Other descriptionN/A

Source locationN/A

Career Ready

Career-focusedNo

Work-based learningNo

Self sourced or Uni sourcedN/A

Entire subject or partial subjectN/A

Total hours/days requiredN/A

Location of WBL activity (region)N/A

WBL addtional requirementsN/A

Graduate capabilities & intended learning outcomes

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.
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.

Subject options

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Start date between: and    Key dates

Melbourne (Bundoora), 2021, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorBuly Cardak

Class requirements

LectureWeek: 10 - 22
One 2.00 h 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 h tutorial per week on weekdays during the day from week 11 to week 22 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

One 1 hour mid semester exam Equivalent to 1000 words

N/AOther written examIndividualNo20 SILO1, SILO2

One 2 hour final exam Equivalent to 2000 words

N/ACentral examIndividualNo50 SILO1, SILO2, SILO3, SILO4

Tutorial assessments (500 word equivalent)

N/AOtherIndividualNo10 SILO1, SILO2, SILO3, SILO4

Assignment (1000 words)

N/AAssignmentIndividualNo20 SILO3, SILO4