Contract Theory

Abstract

This course will provide an overview of important a re s of the economics of information. It will cover classic papers of contract design under asymmetric information (moral hazard and adverse selection models), mechanism design and auctions, and, if tim e permits, also reputation. EXAMINATION The examination will consist of weekly problem sets , presentations of articles, and an exam. TOPICS 1. MORAL HAZARD I: STATIC BILATERAL 2. MORAL HAZARD II: MULTIAGENT AND DYNAMIC 3. ADVERSE SELECTION I: STATIC BILATERAL 4. ADVERSE SELECTION II: DYNAMIC, SIGNALING, AND CHEAP TALK 5. AUCTIONS AND MECHANISM DESIGN