GSD Course Bulletin - Fall 2010 - SES-05203-00


05203: Markets and Market Failure (SES 0520302)

Urban Planning and Design
Lecture - 4 credits
Friday 8:40 - 10:00   Littauer RG201
Monday Wednesday 8:40 - 10:00   Littauer 230
Monday Wednesday 10:00 - 11:30   Gund 111
Friday 12:00 - 1:30   Gund 111


Jose Gomez-Ibanez, Joseph Kalt

Course Description

This course provides an introduction to how markets operate, criteria for assessing their performance, and the circumstances under which they perform well or poorly. The first half of the course covers market behavior including supply, demand, and market prices; the strategies of consumers and firms; and the effects of taxes, subsidies, price controls and other kinds of government interventions. The second half covers the assessment of market performance, the problems caused by monopoly, externalities, public goods, and asymmetric information, and the types of policy solutions that might be applied to correct such market failures.At the GSD, the course is open to all but strongly recommended for MUP and MDES real estate students. At the HKS, this course is joint-listed as API-105B. It covers the same topics as API-101 and API-105A but unlike API-101 it is taught with extensive use of case discussions. Students can not take both this course and API-101 or API-105A for credit.

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