(PhD) Economic Theory IV

This part provides an introduction to some of the main subjects in the Öeld of information economics. The asymmetries of information are either about actions (hidden action or Moral Hazard, Topic 3) and/or about some economic aspects of the environment (hidden information and Adverse Selection, Topics 1 and 2). We analyze situations where the uninformed parties set up mechanisms for eliciting information (screening) and situations where the informed parties may take actions for conveying information (signaling). The last topic, Mechanism Design, looks at how social choices are optimally made in environment with asymmetric information