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Topic 3: Demand and Supply considerations

Handout 1 for lecture [pdf] / Handout 2 for lecture [pdf]

Generally, Sloman et al (2012) chapter 2 is what you should have read / be reading.

On top of that, explore the following:

Identification problem

Baumol, WJ (1965), The Empirical Determination of Demand Relationships

Asymmetric information

Akerlof, G (1970), The market for lemons: Quality uncertainty and the market mechanism, QJE, v84 No 3 pp488-500

Landsburg, S (2008), Price Theory and applications, Cengage learning [see chapter 9]

Borooah, VK (2003), Market failure: An economic analysis of its causes and consequences, University of Ulster, February [pdf] [see section 5 on information asymmetry]