Course Learning Outcomes:

This course helps the students to understand efficiency of markets and the environment where the standard market mechanism fails to generate the desirable outcomes. The issues of market imperfection and market failures are important building blocks of this course.

Course Modules:

General equilibrium, efficiency and welfare:

Equilibrium and efficiency under pure exchange and production; overall efficiency and welfare economics

Game theory:

Strategic Games with perfect information; dominant strategies and Nash equilibrium; mixed strategies and best response functions; Sequential vs Simultaneous Games; Subgame Perfect Nash Equilibrium (SPNE); Repeated Games; Strategic Games with imperfect information; Bayesian Games; Perfect Bayesian Equilibrium; Signalling Games

Monopoly and Imperfect Competition:

Monopoly; pricing with market power; price discrimination; peak-load pricing; two-part tariff; monopolistic competition and oligopoly models

Market Failure:

Externalities; public goods and markets with asymmetric information

NOTE: The above modules give a rough idea about the topics covered in our Intermediate Microeconomics-II course. Students will be given modules as per their respective Universities outline after prior discussion.