Microeconomics: When Markets Fail from Coursera

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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.

Monopoly

A monopoly is a case where there is only one firm in the market. We will define and model this case and explain why market power is good for the firm, bad for consumers. We will also show that society as a whole suffers from the lack of competition.

Monopoly Continued

Monopolies come in various types: one price monopoly, natural monopoly, price discrimination and monopolistic competition. This week we will expand the basic monopoly model to cover these cases and then explore market outcomes in each case. We will also discuss how government may intervene in such cases to benefit society as a whole and increase the surplus generated by the market.

Externalities + Public Goods

Two classic cases of market failure will be defined and explored: externalities and public goods. We will define each case, demonstrate why the market fails to provide the efficient outcome and suggest interventions through either marked design or regulation.

Asymetric Information and Inequlity

Up to this point we assumed that there is full information in the market. We are now ready to relax this assumption as we introduce the concepts of moral hazard and adverse selection. We learn that asymmetric information may lead to market failure and we discuss some remedies. The last segment in the course is a reminder that besides efficiency, equity is also a criteria we all care about. A short introduction will explore how economist measure poverty and inequality.

Good to know

Know what's good

, what to watch for

, 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

Reviews summary

Principles applied to the real world

Learners say that this Microeconomics course is clear when explaining principles and how they fail. They also largely agree that the course delivers applied knowledge of these principles by using real world examples.

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

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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

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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

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Mathematical skills are crucial to comprehend the concepts covered in this course. Spend an afternoon reviewing the basics of calculus before the course commences.

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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

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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.

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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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Participate in Discussion Forums

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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.

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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

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Solidify your understanding of market structures and their graphical representations by practicing graphing supply and demand curves, identifying equilibrium points, and analyzing market outcomes.

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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

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Gain exposure to industry insights and diverse perspectives by attending a guest lecture delivered by a professional in the field of market analysis.

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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

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Deepen your understanding of the course material and support the learning of others by contributing to the Coursera community forums.

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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

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Apply the concepts learned in the course to a real-world business scenario by developing a presentation on a specific market case.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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