When do markets work?

Micro – Market Failure

In this course, Dr Maria Cubel (University of Bath) discusses market failure. In the first module, we look at the situations when markets work. After this, we look at public goods. Then, we discuss the tragedy of the commons. In the fourth module, we look at the topic of externalities. Following this, we discuss situations of imperfect competition. Then, we explore situations of adverse selection. In the penultimate module, we look at the issue of moral hazard. Finally, we explore the topic of merit and demerit goods.

When do markets work?

In this module, we look at the situations when markets work. In particular, we look at: (i) how the free market works and under which conditions it achieves an efficient allocation of resources; (ii) the fundamental theorems of welfare economics; (iii) Pareto efficiency; (iv) what happens in situations of excess demand and supply in an efficient market; and (v) the conditions needed for free markets to achieve efficiency.