In this site you will find information about the course, as well as material and references that are useful to prepare it.
INSTRUCTOR: José Luis Ferreira
Class Schedule: Tuesdays 16:00-17:30, room 7.1.06. Fridays 16:00-17:30, room 7.1.02 BIS
Office
Hours: Fridays, 12:00-13:00, office 15.2.35.
OBJECTIVES
The course provides an introduction to the ideas and methods of
contract theory, and develops applications to public and
industrial economics, business organization, etc.
PRERREQUISITES
Familiarity with calculus, basic probability theory, game theory and
microeconomics.
TEXTBOOKS
I. Macho, D. Perez-Castrillo: An
Introduction
to the Economics of Information, Oxford UP, 2001.
V. Krishna, Auction Theory,
Academic Press, 2010.
PROGRAM
1. Risk Distribution: the
Principal-Agent Problem (Macho and Perez-Castrillo, chapter 2).
2. Moral Hazard (Macho and Perez-Castrillo, chapter 3).
3. Adverse Selection: Screening,
Signaling (Macho
and Perez-Castrillo, chapters 4 and 5).
4. Mechanism Design: Auctions (Krishna, chapters 2 and 3).
GRADING
The final grade will be based on class participation and homework assignment (10%), some quizzes
(30%), a class presentation (10%) and a comprehensive final exam (50%). The course
grade of the students who take the extraordinary exam will be that of
the exam if it is larger than this weighted average.
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