Students are expected to have a solid background in Microeconomics and Mathematical Economics
This course teaches some of the tools of the trade for theoretical research in the economics of information and its applications. In particular, students will be introduced to a range of economic tools used to study models explicitly involving strategic behavior, information transmission, and contracting in economics and other business disciplines. We will explore topics ranging from private and asymmetric information, moral hazard with optimal contracts, adverse selection with applications to signaling and screening, and incentive mechanisms such as auctions and tournaments.
Risk and Uncertainty, Adverse Selection, Moral Hazard, Signaling, Auctions
Contract Theory (2005) by Patrick Bolton and Mathias Dewatripoint, MIT
Further material will be distributed in class