Unit 6: Market Structure: Competitive and Non-Competitive Markets
This unit introduces the concept of perfect competition, an ideal model that serves as a benchmark economists use to analyze real-world market structures. The model of perfect (or pure) competition creates an efficient allocation of resources. However, unregulated markets (which are central to perfect competition) often fail to create desired outcomes in the real world. Economists refer to these situations as examples of imperfect competition.
Here we study the model of perfect competition and move on to what many consider the antithesis of perfect competition, the monopoly model. We will explore imperfect competition and two models that fall under it: monopolistic competition and oligopoly. We also touch on game theory, when we discuss the prisoner's dilemma model and the Nash equilibrium.
Completing this unit should take you approximately 23 hours.