There are many different types of market structure. The main ones are: 1. Perfect Competition: Many small price-taking firms in an industry with free-entry. 2. Monopoly: One large price-setting firm in an industry with barriers to entry

12.1 随机漫步与有效市场假定 12.2 有效市场假定对投资决策的影响 12.3 事例研究 12.4 市场有效吗

Structure Market equilibrium Quantity tax and equilibrium Tax incidence （税收分担） Deadweight loss （额外净损失）

Contents Instructor and TAs Requirements Course outline An example: market for apartments

Contents The Edgeworth (艾奇沃斯) Box Pareto improving trade Pareto Efficient Allocation The Core (核心) Trade in a competitive market Walras’ Law of general equilibrium (一般均衡)

The Market System Relies on Supply and Demand to Solve the Trio of Economic Problems

Where are We in the Course? We are working on the 1st of the 3 components of microeconomics: Consumer behavior, production theory, and market. There are three elements of consumer behavior: budget constraint, preference, and choices

Where Are We in the Course? We are studying the 1st of the three blocks of microeconomics: Consumer behavior, production theory, and market equilibrium Within the 1st block, we are working on the 2nd of the three components: choice set, preference, and consumer demand

I. Market Structure Measures of Industry Concentration II. Conduct Pricing Behavior Integration and Merger Activity III. Performance Dansby-Willig Index Structure-Conduct-Performance Paradigm IV. Preview of Coming Attractions

The Purpose of this Chapter To begin to understand the art of building an economic model To begin to understand three basic elements of modeling in economics: –Purpose –Simplification through assumptions –Value judgment