Advanced Microeconomics: Information Economics
The aim of the course is to familiarize students with the basic concepts, models, and methods in information economics, the study of the effects of information asymmetries on economic outcomes.
Understanding of the basic models used to capture the various effects of asymmetric information: adverse selection, nonlinear pricing, moral hazard, mechanism design. Learning techniques to solve these models. Ability to spot when asymmetric information is an important aspect of an economic situation, and to identify the type of asymmetry at play and the modeling tools to use.
There will be 3 problem sets in the course. Each problem set is due at the beginning of class on the given day. The problem sets will not count toward the grade, but it is essential for understanding the material that you do them.
The grade will be determined entirely by the final.