Markets with Frictions

Catalog description

This course explores markets with frictions. Classical economic theory cannot account for important issues such as the coexistence of money and credit or unemployment and vacancies, price dispersion, and intermediation. This course will explore these issues and shed light on questions such as: how do we trade in various markets? how does price dispersion occur? how are intermediaries emerged? why do we use credits? and, how do agents exchange in over-the-counter-markets?