Markets and Market Failures

This course provides an introduction to how markets operate, the criteria for assessing their performance, and the circumstances under which they perform well or poorly. The first half of the course covers skills for predicting market behavior including supply and demand and the strategies of consumers and firms. The second half examines the rationale for government intervention in markets including problems of information, monopoly, externalities and collective or public goods. The course includes a mix of lectures and case discussions, with applications to urban planning stressed. The course requires the completion of weekly problem sets. Evaluation will be based on course participation and in-class mid-term and final exams. No prior exposure to economics is required and. This course is open to all students but recommended for MUP and MDES real estate students. This course is also offered at the Kennedy School as API-105B.