Unit 6: Market Structure: Competitive and Non-competitive Markets
This unit will introduce the concept of perfect competition, an ideal model that serves as a benchmark against which real-world market structures are analyzed. Also known as the model of pure competition, perfect competition results in an efficient allocation of resources. In the real world, however, unregulated markets (which are central to perfect competition) may fail to create desired outcomes for a number of reasons. Economists refer to these situations as examples of imperfect competition.
In this unit, you will first study the Model of Perfect Competition and then move on to what may be considered the antithesis of perfect competition, the Monopoly Model. You will then learn about imperfect competition and the two models that fall under it: monopolistic competition and oligopoly. This unit will also touch upon game theory through the Prisoner's Dilemma Model and a discussion of the Nash Equilibrium.
Completing this unit should take you approximately 23 hours.