Modes of Market Failure
Six modes of market failure:
- Miscalculation—which we will not cover
- Market power
- Adverse selection
Today We Are Going To Do...
Problem Set 2
- Updated version at: http://tinyurl.com/dl20140224
- Do either…
Due on Wednesday at start of lecture
Problem Set 3
Due on Wednesday March 5 at start of lecture
Out on Wednesday
Midterm will be Monday March 10
- Bring blue books!
- Bring pens!
- Bring calculators!
- Open book-open notes!
Ronald Coase, "The Nature of the Firm”
Martin Weitzman, "Prices vs. Quantities”
Milton Friedman and Rose Director Friedman, Free to Choose
Tom Slee, Nobody Makes You Shop at WalMart
What We Do This Week
M Feb 24
W Feb 26
- Hand in Problem Set 2 http://tinyurl.com/dl20140224
- Start Problem Set 3
- Look at Sample Midterm