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Microeconomics

When Markets Fail

4.8 Filled star Filled star Filled star Filled star Half star
Based on 656 ratings
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Rebecca Stein

Perfect markets achieve efficiency: maximizing total surplus generated. But real markets are imperfect. In this course we will explore a set of market imperfections to understand why they fail and to explore possible remedies including as antitrust policy, regulation, government intervention. Examples are taken from everyday life, from goods and services that we all purchase and use. We will apply the theory to current events and policy debates through weekly exercises. These will empower you to be an educated, critical thinker who can understand, analyze and evaluate market outcomes.

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What's inside

Syllabus

Costs and Profits + Perfect Competition
In the first part of the course we learnt that if we allow market forces to work we reach an efficient outcome: the maximum benefit that can be generated by a market. The second part of the course explores cases where the markets fail to accomplish our goals. This week sets up the benchmark case of the perfectly competitive market: a model we will modify in the next few weeks. We define Perfect Competition, learn to model it graphically and discuss some key results in terms of long run profits and implications for efficiency.
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Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Examines imperfect markets, which is standard in economics courses
Taught by Rebecca Stein, who are recognized for their work in economics
Develops critical thinking skills, which are core skills in economics
Uses real-world examples, which makes the concepts more relatable
Covers current events and policy debates, which makes the learning more relevant
Requires students to have a basic understanding of economics

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Reviews summary

Understanding market failures in microeconomics

According to learners, this course provides a solid understanding and clear explanations of complex microeconomic concepts, particularly focusing on when and why markets fail. Students frequently praise the instructor's ability to simplify challenging topics and use relevant, real-world examples. While the course is seen as having a strong theoretical foundation, reviewers note its practical application to current policy debates. Some mention the quizzes and assignments as effective tools for reinforcing learning, making it a highly rewarding experience for those interested in diving deep into market imperfections and their remedies.
Pacing is generally good, some find it challenging.
"The pacing felt just right for covering complex topics without feeling rushed."
"While the content is challenging, the structure and explanations make it manageable."
"As a beginner, I found some parts difficult, but overall it was rewarding."
"Might be challenging if you have absolutely no prior economics background, but worth the effort."
Provides a solid grounding in microeconomic theory.
"The course doesn't shy away from the theory but makes it accessible."
"This course provides a very strong theoretical foundation for understanding why free markets aren't always efficient."
"It delves deeply into the economic models of monopoly, externalities, etc., giving you a robust understanding."
"Came away with a much stronger grasp of the underlying economic principles behind market failures."
Quizzes and exercises reinforce learning effectively.
"The quizzes and exercises really helped solidify my understanding of each week's material."
"Assignments were well-designed to make sure you actually grasped the concepts, not just memorized them."
"The weekly exercises applying theory to policy were particularly valuable for analytical thinking."
"I found the assignments challenging in a good way, pushing me to think critically about market outcomes."
Course uses relevant examples applicable to everyday life.
"Loved the use of everyday examples; it made the concepts immediately relatable and easy to grasp."
"The examples of market failures, like pollution or public goods, really help illustrate the theory."
"Applying theory to current events and policy debates via weekly exercises was very useful."
"The course uses practical examples to show how market failures impact our daily lives."
Concepts are explained in a clear and accessible manner.
"The instructor's explanations are incredibly clear, breaking down complex ideas into understandable pieces."
"Found the lectures very easy to follow, making the difficult topic of market failures much less intimidating."
"The way the course explains externalities and public goods is crystal clear, finally understood these fully."
"I appreciate how clearly the material was presented, making abstract microeconomics concepts tangible."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Microeconomics: When Markets Fail with these activities:
Read 'Microeconomics' by Pindyck & Rubinfeld
Gain a deeper understanding of the fundamental concepts of microeconomics, including market structures, consumer behavior, and market efficiency by reading the classic textbook.
View Microeconomics on Amazon
Show steps
  • Read the assigned chapters and take notes
  • Work through the practice problems at the end of each chapter
  • Summarize the key concepts and theories discussed in each chapter
Review Calculus
Mathematical skills are crucial to comprehend the concepts covered in this course. Spend an afternoon reviewing the basics of calculus before the course commences.
Browse courses on Calculus
Show steps
  • Go over derivative rules (product, chain, quotient, etc.)
  • Practice solving basic integration problems (power, trigonometric, substitution, etc.)
  • Review the concept of limits and continuity
Industry Analysis Project
Comprehend the dynamics of the industries that are covered in this course by researching and writing a brief overview of the key players, trends, and challenges within the chosen industry.
Browse courses on Market Analysis
Show steps
  • Choose an industry of interest
  • Research the major companies, market trends, and competitive landscape within the industry
  • Identify the key challenges and opportunities facing the industry
  • Write a 5-page report summarizing your findings
Five other activities
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Show all eight activities
Participate in Discussion Forums
Engage with fellow students and course instructors by actively participating in the online discussion forums. Ask questions, share insights, and contribute to the course community.
Show steps
  • Read through the discussion topics and choose one to participate in
  • Post a thoughtful question or comment
  • Respond to other students' posts
Practice Graphing and Analyzing Market Structures
Solidify your understanding of market structures and their graphical representations by practicing graphing supply and demand curves, identifying equilibrium points, and analyzing market outcomes.
Browse courses on Market Structures
Show steps
  • Graph different market structures (perfect competition, monopoly, etc.)
  • Identify the equilibrium point and explain its significance
  • Analyze the impact of changes in supply and demand on market outcomes
Attend a Guest Lecture on Market Analysis
Gain exposure to industry insights and diverse perspectives by attending a guest lecture delivered by a professional in the field of market analysis.
Browse courses on Market Analysis
Show steps
  • Check the course schedule for upcoming guest lectures
  • Attend the lecture and take notes
  • Follow up with the guest lecturer if you have any questions
Contribute to the Coursera Course Forum
Deepen your understanding of the course material and support the learning of others by contributing to the Coursera community forums.
Show steps
  • Join the Coursera forums for this course
  • Answer questions posed by other students
  • Share resources and insights related to the course content
Develop a Presentation on a Real-World Market Case
Apply the concepts learned in the course to a real-world business scenario by developing a presentation on a specific market case.
Browse courses on Case Studies
Show steps
  • Choose a specific company or industry to focus on
  • Analyze the market structure, competition, and consumer behavior
  • Develop recommendations based on your analysis
  • Create a visually appealing presentation to share your findings

Career center

Learners who complete Microeconomics: When Markets Fail will develop knowledge and skills that may be useful to these careers:
Economist
Economists are experts in various subfields such as microeconomics, macroeconomics, econometrics, and public economics. Microeconomics, which is the focus of this course, explores concepts such as supply and demand, market structure, and market failure. Understanding these concepts is crucial for economists, as they form the foundational principles of economic analysis. This course provides a solid grounding in microeconomic principles, enabling you to develop the analytical skills required to understand and address complex economic issues.
See salaries and explore the career path for Economist
Financial Analyst
Financial analysts are responsible for evaluating the financial performance of companies and making recommendations to investors. A deep understanding of microeconomics, particularly market structure and pricing, is essential for financial analysts to assess the competitive landscape and predict future performance. This course provides a comprehensive overview of these concepts, helping you develop the analytical skills necessary to succeed as a financial analyst.
See salaries and explore the career path for Financial Analyst
Marketing Manager
Marketing managers oversee the development and execution of marketing campaigns to promote products and services. Understanding microeconomic principles, such as consumer behavior and market segmentation, is crucial for marketing managers to effectively target their marketing efforts and maximize customer satisfaction. This course offers insights into these concepts, providing you with a competitive edge in the marketing field.
See salaries and explore the career path for Marketing Manager
Policy Analyst
Policy analysts research and analyze public policies to inform policymaking decisions. A strong foundation in microeconomics is essential for policy analysts, as it equips them with the tools to understand market dynamics and the potential impact of policy interventions. This course delves into market failures and explores possible remedies, providing you with valuable insights for developing and evaluating effective public policies.
See salaries and explore the career path for Policy Analyst
Consultant
Consultants provide professional advice to businesses and organizations on a wide range of issues. Many consulting roles require expertise in microeconomics, particularly in areas such as market research, strategy development, and risk assessment. This course provides a comprehensive understanding of microeconomic principles, giving you a solid foundation for a successful career in consulting.
See salaries and explore the career path for Consultant
Business Analyst
Business analysts help organizations improve their performance by analyzing data and identifying areas for improvement. Microeconomics is essential for business analysts as it provides a framework for understanding market dynamics, industry analysis, and cost-benefit analysis. This course provides a strong foundation in these concepts, empowering you to effectively contribute to business decision-making.
See salaries and explore the career path for Business Analyst
Market Researcher
Market researchers collect and analyze data to understand consumer behavior and market trends. A thorough knowledge of microeconomics is crucial for market researchers, as it helps them interpret data, identify patterns, and make accurate predictions. This course provides a comprehensive understanding of microeconomic principles, giving you a competitive advantage in the field of market research.
See salaries and explore the career path for Market Researcher
Regulatory Analyst
Regulatory analysts are responsible for analyzing and interpreting regulations to ensure compliance and minimize risk. An understanding of microeconomics, particularly in the areas of market structure and government intervention, is essential for regulatory analysts to effectively assess the impact of regulations on businesses and consumers. This course provides a strong foundation in these concepts, preparing you for a successful career in regulatory affairs.
See salaries and explore the career path for Regulatory Analyst
Antitrust Lawyer
Antitrust lawyers specialize in the legal aspects of competition and market regulation. A deep understanding of microeconomic principles, such as market structure, pricing, and antitrust policy, is crucial for antitrust lawyers to effectively represent clients and advocate for fair competition. This course provides a comprehensive overview of these concepts, giving you a strong foundation for a successful career in antitrust law.
See salaries and explore the career path for Antitrust Lawyer
Academic Researcher
Academic researchers in economics conduct research to advance the field and contribute to economic theory. Microeconomics is a core area of research in economics, and this course provides a solid foundation for pursuing a career in academic research. The course covers advanced concepts in market failure, externalities, and public goods, equipping you with the analytical skills necessary to conduct rigorous research and contribute to the field.
See salaries and explore the career path for Academic Researcher
Journalist
Journalists specializing in business and economics require a solid understanding of microeconomic principles to effectively report on market trends, industry analysis, and economic policies. This course provides a comprehensive overview of microeconomic concepts, giving you the necessary foundation to analyze and interpret economic data, events, and policies.
See salaries and explore the career path for Journalist
Investment Banker
Investment bankers assist companies in raising capital and providing financial advice. An understanding of microeconomics, particularly in the areas of market structure and valuation, is beneficial for investment bankers to assess the competitive landscape and make sound investment recommendations. This course provides a strong foundation in these concepts, giving you an advantage in the field of investment banking.
See salaries and explore the career path for Investment Banker
Public Policy Advisor
Public policy advisors provide advice to government officials on policy development and implementation. A strong foundation in microeconomics is essential for public policy advisors, as it equips them with the tools to analyze the economic impact of policies and make recommendations that promote economic efficiency and equity. This course provides a comprehensive understanding of microeconomic principles, giving you a competitive edge in the field of public policy.
See salaries and explore the career path for Public Policy Advisor
Nonprofit Manager
Nonprofit managers oversee the operations and programs of nonprofit organizations. An understanding of microeconomics, particularly in the areas of market failure and public goods, is beneficial for nonprofit managers to effectively allocate resources and maximize the impact of their programs. This course provides a strong foundation in these concepts, giving you an advantage in the field of nonprofit management.
See salaries and explore the career path for Nonprofit Manager
Statistician
Statisticians collect, analyze, and interpret data to provide insights for decision-making. A strong foundation in microeconomics is beneficial for statisticians working in the fields of market research, econometrics, and policy analysis. This course provides a solid understanding of microeconomic principles, giving you an edge in interpreting economic data and drawing meaningful conclusions.
See salaries and explore the career path for Statistician

Reading list

We've selected nine books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Microeconomics: When Markets Fail.
Cover image
The Antitrust Revolution
Save
Provides a thorough examination of antitrust policy and its role in promoting competition and preventing market failures. It covers the history of antitrust law, its economic foundations, and its application to various industries.
The Antitrust Revolution: Economics, Competition,...
Paperback
$$$
The Antitrust Revolution: Economics, Competition,...
Paperback
$$$
The Antitrust Revolution: Economics, Competition,...
Paperback
$$$
The Antitrust Revolution: Economics, Competition,...
Paperback
$$
Cover image
Economics for an Imperfect World
Save
Explores the concept of public goods and market failures, and provides a detailed analysis of how government intervention can be used to correct for these failures.
Economics for an Imperfect World: Essays in Honor...
Hardcover
$$$
Cover image
Cost-Benefit Analysis
Save
Provides a comprehensive overview of externalities, which are costs or benefits that are imposed on third parties as a result of economic activities. It discusses the different types of externalities and the various policy tools that can be used to address them.
Cost-Benefit Analysis: Concepts and Practice
Paperback
$$$
Cost-Benefit Analysis: Concepts and Practice
Paperback
$$$
Cost-Benefit Analysis: Concepts and Practice
Paperback
$$
Cost-Benefit Analysis: Concepts And Practice
Paperback
$$
Cost Benefit Analysis: Concepts and Practice
Hardcover
$$$
Cost-Benefit Analysis: Concepts and Practice
Kindle Edition
$$
Cover image
The World Trading System at Risk
Save
Examines the economic effects of government intervention in markets. It discusses the different types of interventions, their rationale, and their potential benefits and drawbacks.
The World Trading System at Risk (Princeton Legacy...
Hardcover
$$$
Cover image
eCommerce Economics
Save
Introduces the field of behavioral economics, which combines insights from psychology and economics to understand how individuals make decisions. It discusses the different biases and heuristics that can lead to market failures.
eCommerce Economics
Kindle Edition
$$$
e-Commerce Economics (Critical Concepts in...
Hardcover
$$$$
E-Commerce Economics
Hardcover
$$$
Cover image
Experimental Economics
Save
Provides a concise overview of experimental economics, which uses laboratory experiments to test economic theories. It discusses the different types of experiments that can be conducted and the insights that they can provide.
Experimental Economics
Hardcover
$$$$
(中文) Behavioral and experimental economics Classic...
Paperback
$$$
Experimental Economics
Kindle Edition
$$$$
Cover image
Economic Policy: Theory and Practice
Save
Comprehensive textbook on industrial organization, which studies the behavior of firms in markets. It covers a wide range of topics, including market structure, pricing, and game theory.
Economic Policy: Theory and Practice
Kindle Edition
$$$
Economic Policy: Theory and Practice
Kindle Edition
$$$$
Cover image
Adam Smith Goes to Moscow
Save
Provides a historical overview of monopoly and competition in the United States. It discusses the different antitrust laws that have been enacted and their impact on market structure and economic growth.
Adam Smith Goes to Moscow: A Dialogue on Radical...
Kindle Edition
$$
Cover image
The Road to Freedom: Economics and the Good Society
Save
Provides a comprehensive overview of the economics of information, which studies the role of information in economic decisions. It covers a wide range of topics, including asymmetric information, signaling, and screening.
The Road to Freedom: Economics and the Good Society
Hardcover
$$
The Road to Freedom: Economics and the Good Society
Kindle Edition
$

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Rating
4.8 Filled star Filled star Filled star Filled star Half star
Effort
11 hours to complete
Via
Coursera
Institution
University of Pennsylvania
Instructor
Rebecca Stein
Language
English
Transcripts
Español Français Português Deutsch Italiano 中文 العربية 한국어 日本語 हिंदी Nederlands Svenska Pусский Türkçe Polski Ελληνικά українська мова magyar nyelv Bahasa Indonesia ไทย қазақша اُردُو, فارسی বাংলা پښتو آذربایجان دیلی монгол хэл
Traffic lights
Read about what's good
what should give you pause
and possible dealbreakers
Examines imperfect markets, which is standard in economics courses
Taught by Rebecca Stein, who are recognized for their work in economics
Develops critical thinking skills, which are core skills in economics
Uses real-world examples, which makes the concepts more relatable
Covers current events and policy debates, which makes the learning more relevant
Requires students to have a basic understanding of economics
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