Key to textbooks used in the course:
MWG = MasColel, A., M. Whinston, and J. Green. Microeconomic Theory. Oxford University Press, 1995.
Kreps = Kreps, D. A Course in Microeconomic Theory. Princeton University Press, 1990.
Varian = Varian, H. Microeconomic Analysis. 3rd ed. W. W. Norton Company, 1992.
| 1-4 |
Choice Under Uncertainty |
MWG. Chapter 6 C-D, pp. 183-199.
Kreps. Chapters 3.2-3, pp. 81-98.
Varian. Chapters 11.5-7, pp. 177-190.
Holmstrom, B. "Lecture Note: Decision Making Under Uncertainty - Experiments and Value of Information".
Rothschild, M., and J. Stiglitz. "Increasing Risk I: A Definition." Journal of Economic Theory 2 (1970).
Wilson, R. "The Theory of Syndicates." Econometrica 36, no. 1 (1968): 119-132.
Rabin, M. "Risk Aversion and Expected-Utility Theory: A Calibration Theorem." Econometrica 68, no. 5 (2000): 1281-92.
Recommended:
Hirshleifer, J., and J. Riley. The Analytics of Uncertainty and Information. Cambridge University Press, 1992, Chapter 5.
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| 5-6 |
Moral Hazard |
MWG. Chapter 14.
Kreps. Chapter 16.
Varian. Chapter 25.4.
Hart, O., and B. Holmstrom. "The Theory of Contracts." In T. Bewley (ed.), Advances in Economic Theory -- Fifth World Congress. Cambridge University Press, 1987.
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| 7-8 |
Adverse Selection; Signaling |
MWG. Chapter 13 A-C, pp. 436-459.
Kreps. Chapters 17.1-3, pp. 625-650.
Varian. Chapters 25.9-11, pp. 468-471.
Akerlof, G. "The Market for Lemons: Qualitative Uncertainty and the Market Mechanism." Quarterly Journal of Economics 84, no. 3 (1970): 488-500.
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| 9-10 |
Adverse Selection; Screening |
MWG. Chapter 13 D, pp. 460-467.
Kreps. Chapter 17.2, pp. 629-645.
Varian. Chapters 25.6-9, pp. 457-469.
Rothschild, M., and J. Stiglitz. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information." Quarterly Journal of Economics 90, no. 4 (1976): 629-649.
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| 11-12 |
Mechanism Design |
MWG. Chapter 23 A-D, pp. 857-891.
Kreps. Chapter 18, pp. 661-713.
Varian. Chapter 23, pp. 414-431.
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