This course covers market failures in the presence of externalities, market power and asymmetric information. Topics include: externalities, public goods, social choice and voting, monopoly, oligopoly, bargaining, adverse selection, signalling, screening, moral hazard, mechanism design and auctions.
Third part in the first-year graduate microeconomics sequence, covering market failures in the presence of externalities, market power and asymmetric information.
1. Externalities and public goods 2. Market power 3. Bargaining and price formation 4. Moral hazard and adverse selection 5. Mechanism design and auctions
Class participation is strongly encouraged. Problem sets will be handed out and graded. Final grade is based on tests.
Note. If a student fails the course in June, he/she can resit a final exam in July, which will be worth 100% of the final grade.
Final grade based on test in class (75%) and exam (25%).