The Power of Markets III: Input Markets and Promoting Efficiency

University of Rochester via Coursera

Go to Course: https://www.coursera.org/learn/market-efficiency

Introduction

### Course Review: The Power of Markets III: Input Markets and Promoting Efficiency **Overview** As the culmination of the "Power of Markets" series, the course **The Power of Markets III: Input Markets and Promoting Efficiency** dives deep into the complexities of firm behavior in imperfectly competitive markets. This course is particularly relevant in today’s economic environment where understanding market dynamics is more crucial than ever. Over the span of four weeks, students will explore various aspects of market pricing, competition, and the role of government in enhancing economic efficiency. **Syllabus Breakdown** - **Week 9: Product Pricing With Monopoly Power** This week kicks off with an examination of price discrimination practices employed by firms with monopoly power. It offers insights into how monopolistic firms can enhance their profits by strategically setting different prices for different consumers based on their willingness to pay. The discussion extends to the behavior of firms in monopolistic competition and oligopoly, illuminating how these market structures influence pricing strategies and output levels. - **Week 10: Monopolistic Competition and Oligopoly** The complexity of imperfect information is the focus here. Students will analyze how information asymmetries impact both firm behavior and consumer choices. Additionally, the course highlights the efficiency effects of monopolistic practices and provides an overview of the collective demand for inputs across various industries, laying a solid groundwork for understanding market interactions. - **Week 11: The Market for Inputs** This week shifts focus to the supply of inputs and how input prices are determined. It breaks down the critical role that input markets play in the broader economy, emphasizing their impact on production costs and pricing strategies. Understanding input markets is essential for grasping the entire value chain of firm operations, making this segment of the course invaluable for future economists and business leaders. - **Week 12: Can Government Intervention Improve Market Outcomes?** The final week focuses on the interplay between markets and government intervention. Through a careful analysis of case studies including minimum wage laws, social security, immigration policies, and the economic dynamics of the NCAA, students will learn when and why government action may be necessary to promote market efficiency. This week prompts critical thinking about the balance between free markets and regulatory measures, encouraging students to consider real-world implications of economic theories. **Recommendation** I highly recommend **The Power of Markets III: Input Markets and Promoting Efficiency** for anyone interested in delving into the nuances of economic theory as it applies to market structures and firm behavior. The course is well-structured, gradually building on foundational concepts from previous modules to culminate in a comprehensive understanding of both theoretical and practical aspects of economics. The expert instructors guide students through complex ideas using real-world examples, making the learning experience both engaging and applicable. Each week's content is thoughtfully organized, and the inclusion of case studies enhances understanding by linking theory to practice. Whether you are a student of economics, a business professional, or simply someone interested in better understanding market dynamics, this course provides crucial insights that are pertinent to various fields. The ability to analyze market behavior, price strategies, and the role of government intervention equips students with valuable skills applicable in numerous professional settings. Enroll in **The Power of Markets III** on Coursera to enhance your understanding of input markets and promote efficiency in economic discourse!

Syllabus

Week 9 - Product Pricing With Monopoly Power

Price Discrimination. Firm Behavior in Cases of Monopolistic Competition and Oligopoly.

Week 10 - Monopolistic Competition and Oligopoly

Imperfect Information. The Efficiency Effects of Monopoly. Firm, Industry, and Market Demand for an Input.

Week 11 - The Market for Inputs

The Supply of Inputs and the Determination of Input Prices.

Week 12 - Can Government Intervention Improve Market Outcomes?

Using Input Market Theory to Analyze the Minimum Wage, Social Security,Immigration, and the NCAA. Promoting Market Efficiency and Why Government Intervention in Markets May be Justified.