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The Power of Markets III: Input Markets and Promoting Efficiency

Approx. 8 hours to complete

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Course Summary

Learn about the Efficient Market Hypothesis and its implications in financial markets. This course covers both theoretical and empirical evidence of market efficiency.

Key Learning Points

Understand the Efficient Market Hypothesis and its impact on financial markets
Evaluate the evidence for and against market efficiency
Apply different methods to test market efficiency

Job Positions & Salaries of people who have taken this course might have

- USA: $67,000 - $105,000
- India: ₹4,00,000 - ₹12,00,000
- Spain: €25,000 - €50,000
- USA: $67,000 - $105,000
- India: ₹4,00,000 - ₹12,00,000
- Spain: €25,000 - €50,000
- USA: $85,000 - $145,000
- India: ₹9,00,000 - ₹20,00,000
- Spain: €40,000 - €80,000
- USA: $67,000 - $105,000
- India: ₹4,00,000 - ₹12,00,000
- Spain: €25,000 - €50,000
- USA: $85,000 - $145,000
- India: ₹9,00,000 - ₹20,00,000
- Spain: €40,000 - €80,000
- USA: $80,000 - $135,000
- India: ₹6,00,000 - ₹18,00,000
- Spain: €35,000 - €70,000

Learning Outcomes

Ability to evaluate the efficiency of financial markets
Understanding of different investment strategies and their effectiveness
Knowledge of behavioral finance and its impact on market efficiency

Prerequisites or good to have knowledge before taking this course

Basic knowledge of finance
Familiarity with statistical methods

Course Difficulty Level

Intermediate

Course Format

Self-paced
Online
Video Lectures

Similar Courses

Investment Management Specialization
Financial Markets

Related Education Paths

Notable People in This Field

Eugene Fama
Robert Shiller

Related Books

Description

The final module of the Power of Markets course begins by further exploring firm behavior in imperfectly competitive market settings: how firms with monopoly power can increase profits through price discrimination; and the price-output combinations we can expect firms to select in cases of monopolistic competition and oligopoly. We will also analyze monopolies from an efficiency perspective and look at the effects of imperfect information on firm and consumer behavior. We will next turn to exploring input markets and what determines the demand for an input by a firm, an industry, and the overall market. We will also look at the factors that affect input supply and how the supply of an input interacts with demand to determinant input prices. We will use input market theory to analyze institutions and government policies such as the NCAA sports cartel, the minimum wage, Social Security, and immigration. Finally, we will address the concept of market efficiency and what government can do to promote it as well as how government intervention may diminish it.

Outline

Week 9 - Product Pricing With Monopoly Power
Intertemporal Price Discrimination and Peak-Load Pricing
Two-Part Tariffs
Monopolistic Competition
Oligopoly and the Cournot Model
The Dominant Firm Model
Cartels and Collusion
OPEC
Game Theory
Prisoner’s Dilemma
Repeated Games
Week 9 Quiz

Week 10 - Monopolistic Competition and Oligopoly
Asymmetric Information
Adverse Selection and Moral Hazard
Limited Price Information and Advertising
The Size of the Deadweight Loss of Monopoly
Do Monopolies Suppress Innovations?
Natural Monopoly
More on Game Theory: Iterated Dominance and Commitment
The Input Demand Curve of a Competitive Firm
Industry and Market Demand Curves for an Input
Week 10 Quiz

Week 11 - The Market for Inputs
The Supply of Inputs
Industry Determination of the Price and Employment of Inputs
Input Price Determination in a Multi-Industry Market
Input Demand and Employment by an Output Market Monopoly
Monopsony in Input Markets
The Income-Leisure Choice of the Worker
The Supply of Hours of Work
The General Level of Wage Rates and Why Wages Differ
Economic Rent
Monopoly Power in Input Markets: Unions
Week 11 Quiz

Week 12 - Can Government Intervention Improve Market Outcomes?
The Minimum Wage
Who Really Pays for Social Security?
The NCAA Cartel
The Benefits and Costs of Immigration
Three Conditions for Economic Efficiency
Reasons for Government Intervention
Externalities and Public Goods
Externalities
Externalities and Property Rights
Controlling Pollution, Revisited
Week 12 Quiz

Summary of User Reviews

Discover the secrets of market efficiency and learn the practical skills needed to succeed in the world of finance. This course is highly recommended by users who appreciate its comprehensive coverage of the topic and engaging teaching style.