Temple University 3 credits BA
This is a theory course that studies how we can use optimal contracting to solve problems arising from asymmetric information and conflicts of interests. We will discuss mainly three types of such problems: adverse selection (hidden information), moral hazard (hidden action), and non-verifiability, and their interactions. Solutions to such problems involve screening and signaling. Thus this course can be called several names: information economics, incentive economics, or contract theory. Basic knowledge in calculus, statistics, and micro-economics is required.
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