Markets, Incentives & Institutions

How prices coordinate activity, how incentives shape behavior, and why rules and institutions matter.

Module
2
Confirmed
0
Open
3
  • Demand and supply
  • Elasticity and incentives
  • Strategic interaction
  • Institutions and rules

This module turns the first module’s individual choice tools outward. You will learn to read a market as a coordination system, examine how incentives change behavior, and notice the institutional rules that make exchange possible or impossible.

Keep one running case study for all three weeks: choose a market or institution you encounter personally, such as housing, education, work, digital platforms, transport, or healthcare. The final deliverable is a short institutional diagnosis of that case.

Student's Book

Each week begins with Sofia's rationale, opens into a lesson sequence, then narrows into workbook practice and confirmation.

  1. Week 4 Markets and Coordination

    How demand, supply, prices, and information coordinate the plans of buyers and sellers.

  2. Week 5 Incentives and Behavior

    How rewards, penalties, prices, and framing change behavior, and why incentives can backfire.

  3. Week 6 Strategy and Institutions

    How choices depend on what others may do, and how rules make cooperation more or less possible.