Economics 452/551

COURSE MATERIAL

Course outline

Lectures:

Intro/review:

1. Intro and expected utility (pdf)

2. contingent commodities (pdf)

3. particular preferences (pdf)

4. comparative statics (pdf)

Adverse selection: benchmark (pdf)

adverse selection: outcomes (pdf)

adverse selection example # 1: nonlinear pricing (pdf)

example # 2: insurance (pdf); example # 3: spence adverse selection

moral hazard part 1  , part 2 , part 3 (MLRP),example with risk averse agent; multitasking

auctions

Assignments

Assign 1, with suggested answers, 551 addendum to asgn1

Assignment 2, with suggested answers, + sorcerers

Assignment 3 , with suggested answers

Midterm 2007

Previous midterm: 2006

Previous finals: 2003, 2005, 2006