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Back to Firm Level Economics: Markets and Allocations

Firm Level Economics: Markets and Allocations, University of Illinois at Urbana-Champaign

4.9
355 ratings
64 reviews

About this Course

In this class, we will derive equilibrium outcomes across a variety of market structures. We will begin by understanding equilibrium under a market structure called Perfect Competition, a benchmark construction. Economists have tools to measure the efficiency of market outcomes. We next consider the polar extreme of a competitive market: a monopoly market. We will determine the monopoly equilibrium price and quantity and efficiency properties. Much economic activity takes place in markets with just a handful of very large producers. To understand equilibrium in these oligopoly markets requires more careful attention to strategic interdependence. To capture this interdependence, we consider collusive arrangements among a small number of rivals as well as the use of simple game theoretic techniques to model equilibrium. Market Failure describes situations where markets fail to find the efficient outcome. Information asymmetries are one fertile form of market failure. Another form of market failure occurs when externalities are present. We will examine one key externality, pollution, and construct a policy prescription to mitigate the negative efficiency impacts of this externality. Upon successful completion of this course, you will be able to: • Explain how different market structures result in different resource allocations. • Model the impact of external shocks to a particular market structure and demonstrate the new equilibrium price and quantity after the impact of this external shock has played out. • Evaluate the efficiency of an equilibrium. Different market structures produce different levels of efficiency. • Explain when and why the government might intervene with regulatory authority or antitrust litigation to lessen inefficiencies in some markets. • Describe how information problems can cause inefficient outcomes. • Understand externalities and consider optimal government response to these market failures. This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see the Resource page in this course and onlinemba.illinois.edu....

Top reviews

By AA

Jun 08, 2016

Awesome instructor, awesome materials and awesome learners. Of course, difficult assignments that I taught me a lot! Thank you Coursera, Dr. Larry and the entire team behind the scene.

By JF

Mar 05, 2019

Professor DeBrock made the class very interesting with great real-world examples. I feel that I have learned so much from this class that I will carry with me throughout my career.

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60 Reviews

By Eric M. Leander, Esq.

Mar 12, 2019

Great learning experience, teacher is clear and relatable. I'm still holding out on a 5-star until I can figure out exactly how I'll use this stuff in IRL context as a C-level exec. Good background info though... utilitarian? Maybe not so much atm.

By Luz Kanwar

Mar 06, 2019

The professor made it very easy to learn and he retained my attention the entire time. Great Professor!

By Joe Favre

Mar 05, 2019

Professor DeBrock made the class very interesting with great real-world examples. I feel that I have learned so much from this class that I will carry with me throughout my career.

By Jay Koshchanov

Mar 04, 2019

Great class, loved it and learned a lot.

By Keith Kendall Dupersoy

Mar 02, 2019

Great course, learned a lot of new stuff and I understand markets much better.

By Vivek Bhamre

Mar 02, 2019

Excellent Course, thank you Dr. Larry!

By Michael O'Brien

Mar 02, 2019

Great class and professor!

By Eydie R. Vanderbosch

Mar 01, 2019

Professor DeBrock was excellent. I really enjoyed this course despite finding it very challenging. It required a lot of study time to complete the iMBA portion assignments and exams but was very much worth it. I will miss Professor DeBrock saying "I have the pen" and "little green sheets of paper". Both always brought a big smile to my face. Thank you Professor DeBrock! I also sincerely appreciate Professor Dolgopolov's assistance with understanding difficult topics and his timely response to forum questions. You and all the assistants that helped made this course a pleasure despite its difficulty!

By MAYUR BRAHMANKAR

Mar 01, 2019

Best Course!

By Kristin Park

Feb 27, 2019

I really enjoyed this class. My last econ class was in high school, so I was a little worried, but Professor Brock made things easy to understand. Thank you!