Teaching
2009-10:
BA 865: Asymmetric Information
This Ph.D. course is designed to introduce students to the tools used in modeling asymmetric
information and to expose them to applications in different areas. The prerequisite for
the course is Economics 601 or an equivalent. The course begins with an introduction to
the main tools used in game theory, Bayesian Nash equilibrium and perfect Bayesian
equilibrium. Adverse selection and moral hazard, the two main approaches to modeling
asymmetric information in contract theory, are discussed. For much of the course, the
focus is on applications of asymmetric information models drawn from different areas,
including disclosure of information (accounting), external financing (finance),
technology licensing (information technology), pricing (marketing), and auctions
(of interest to several areas).
Last year's syllabus for the class is available here.