Introduction The objective of this chapter is to study how employment is determined in the labor market We are considering the labor market in which the following relation should always hold:
Introduction The objective of this chapter is to study ho lOW money and interest rate is determined in the money and financial market The money and financial market is the market in which money and various financial assets(such as, bonds and stocks) are exchanged
INVESTMENTS Fourth Edition Efficient Market Hypothesis (EMHD Do security prices reflect information Why look at market efficiency Implications for business and corporate finance Implications for investment
Types of market efficiency The weak-form of efficiency: price accurately reflect all information that can be derived by examining market trading data such as past prices, trading volume, short interest rate, etc
Revisiting the Market Equilibrium Do the equilibrium price and quantity maximize the total welfare of buyers and sellers? Market equilibrium reflects the way markets allocate scarce resources. Whether the market allocation is desirable is determined by welfare economics
Investment Decision vs. Financing Decision Market Efficiency Weak form efficiency Semi- -strong form efficiency Strong form efficiency Lessons of Market Efficiency
1963/1.206J16.77ESD215JThe Schedule design problem Outline Problem Definition and Objective Schedule design with Constant market Share Schedule design with variable market Share Schedule design solution Algorithm Results Next Steps A Look to the Future in airline schedule optimization
Chapter 6 presents the supply side of the market using an approach parallel to that of the demand side of the market in Chapter 5. The chapter presents the material in a way that illustrates the second core principle of the textbook, that marginal benefits should equal marginal costs Chapter 5 presents the demand curve as derived from marginal benefit and Chapter 6 presents the supply curve as derived from marginal costs
