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.
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
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Microeconomics with Calculus. 4th 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 and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,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:
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,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:
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
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:
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Subject options
Select to view your study options…
Melbourne, 2020, Semester 1, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorBuly Cardak
Class requirements
Tutorial
Week:
11
-
22
One 1.0 hours tutorial per week
on weekdays
during the day
from week 11 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 element | Comments | % | ILO* |
|---|---|---|---|
| One 1 hour mid semester exam | Equivalent to 1000 words | 20 | 01, 02 |
| One 2 hour final exam | Equivalent to 2000 words | 50 | 01, 02, 03, 04 |
| Tutorial assessments (500 word equivalent) | 10 | 01, 02, 03, 04 | |
| Assignment (1000 words) | 20 | 03, 04 |