Microeconomic theory iv
Master
In Maynard (USA)
Description
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Type
Master
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Location
Maynard (USA)
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Start date
Different dates available
The topic of the class is information and contract theory. The purpose is to give an introduction to some of the main subjects in this field: decision making under uncertainty, risk sharing, moral hazard, adverse selection, mechanism design, and incomplete contracting.
Facilities
Location
Start date
Start date
Reviews
Subjects
- Press
- IT risk
- Risk
- Decision Making
Course programme
Lectures: 2 sessions/week, 1.5 hours/session
Recitations: 1 session/week, 1.5 hours/session
The prerequisite for this course is 14.123 Microeconomic Theory III or MIT students can get permission of the instructor.
There will be a final exam that is closed book. There will be 4-5 homework sets, which are marked but do not directly count in the grade. As an empirical statement, note that YOU HAVE TO DO THE HOMEWORK TO DO WELL.
I will mainly follow the textbook by Mas-Colell, Whinston, and Green (MWG). I also provide supplementary readings from other books, but for the most part MWG will do. Bolton and Dewatripont’s book does provide more in-depth material; it is used in 14.281 Contract Economics, but many will find it useful also for this class. The book by Gollier is an excellent, in-depth treatment of decision making under uncertainty. It may well be worth your investment to buy the book for future reference. I have included in the reading list a few articles, either because they are classic, or because my lectures will make use of them.
Mas-Colell, Andreu, Michael D. Whinston, and Jerry R. Green. Microeconomic Theory. Oxford University Press, 1995. ISBN: 9780195073409.
Varian, Hal R. Microeconomic Analysis, Third Edition. W.W Norton & Company, 1992. ISBN: 9780393957358.
Bolton, Patrick, and Mathias Dewatripont. Contract Theory. MIT Press, 2004. ISBN: 978026202576.
Hart, Oliver. Firms, Contracts, and Financial Structures. Clarendon Press, 1995. 9780198288817.
Milgrom, Paul. Putting Action Theory to Work. Cambridge University Press, 2004. 9780521536721.
Gollier, Christian. The Economics of Risk and Time. The MIT Press, 2004. 9780262572248.
See the Readings section for the complete list of the readings used in the class.
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Microeconomic theory iv