By the end of the course, students will be able to:
Explain the different economic concepts covered in class concerning the role of institutions in the functioning of the market.
Present, where relevant, the formal reasoning behind these concepts.
Present a text from the economic tradition by explaining its thesis and outlining its strengths and limitations.
Be able to formulate and argue their own position about the institutions that are desirable for the economic system of our societies.
This class explores the link between markets and other social and political institutions.
Two main topics will be covered:
- The question of “historical materialism”: to what extent do the economic and technological conditions determine the institutions of society?
- The question of the market and of economic liberalism: what is the liberal thesis and its critics? What are the different ways of understanding the relationship between the market and other institutions (central planning / social democracy / ordoliberalism / Manchesterian laissez-faire, etc.)
The question will be addressed through an historical overview of how economic theories have addressed the relationship between markets and institutions. It will begin in the 17th and 18th centuries with the Physiocrats and Adam Smith, and continue through to the early 21st century.
The main authors and schools of thought studied will be:
- The Physiocrats and Adam Smith.
- The Manchesterian "laissez-faire".
- Karl Marx.
- Karl Polanyi.
- Ludwig von Mises and the debates about the possibility of an economic organization without the market.
- German ordoliberalism.
- John Kenneth Galbraith and the question of technological oligopolies.
- New Institutional Economics (in particular Ronald Coase, Harold Demsetz, and Douglas North).
- Some time will be devoted to the discussion of the validity and actuality of Mises’ and Galbraith’s arguments in the context of Generative AI.
In case there is enough time, some specific questions can also be addressed, such as
- The moral foundations and moral consequences of the market.
- The structure of property, particularly within firms.
- Private/common/private property and its determinants.
- The debate surrounding the “Coase theorem” and its limitations.
Lectures, with significant time allocated for student questions. Course materials will include lecture content, PowerPoint presentations, and texts and articles made available. These texts will need to be read before class.
The assessment will be based on a 30-minute oral exam, preceded by a 30-minute preparation period.
1. The first question will relate to one of the texts or articles presented in class and will aim to ensure that the student has a thorough understanding of the text. The text in question will be provided to the student. The list of texts will be provided in advance.
2. A second question will focus on a point covered in the course.
The final grade will take into account both parts of the oral exam.
During this course, some optional assignments will be offered. Their purpose is to encourage students to elaborate a personal reflection and to help them internalize the course content. They will count toward the final grade as bonus points, provided the grade is higher than 10/20. (For these assignments, the use of AI is not recommended, and must be disclosed in all cases (more detailed instructions are available on the course's Webcampus page).
| Formation | Programme d’études | Bloc | Crédits | Obligatoire |
|---|---|---|---|---|
| Master 120 en sciences économiques, orientation générale | Finalité approfondie | 1 | 5 | Non |
| Master 120 en sciences économiques, orientation générale | Finalité didactique | 1 | 5 | Non |
| Master 120 en sciences économiques, orientation générale | Finalité spécialisée | 1 | 5 | Non |