- The role of information in economics
- Market economy with contingent commodity: Arrow-Debreu equilibrium
- Sequential Trade
- Complete and incomplete asset market
- The role of insurance and risk sharing.
- State-space representation.
- Asymmetric information and incentives.
- The revelation principle. Adverse selection. The market of lemons.
- Optimal contracts, signaling and screening, adverse selection in insurance markets.
- Moral hazard. The standard principal-agent problem, moral hazard and insurance.
The course covers selected topics from this list: Strategic dominance, Nash equilibrium, Mixed strategies, Backward induction, Alternating-offer bargaining, Subgame perfect equilibrium Repeated games, Incomplete information, Auctions and Revenue equivalence, Perfect bayesian equilibrium Signaling games, Equilibrium selection, Evolutionary game theory.