Reading list
Economics of Information
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Laffont, J.J. & D. Martimort (2002). The Theory of Incentives: The Principal Agent Model. Princeton University Press.
Chapter 2 (intro, 2.1-2.9, 2.12, 2.15), chapter 4 (4.1-4.4, 4.7, 4.8) and chapter 6 (intro, 6.1-6.2).
General equilibrium
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Snyder C., Nicholson W. and R. Steward (2016) ?Microeconomic Theory: Basic Theory and Extensions?, Cengage Learning EME, Europe, Middle East and Africa Edition, Paperback, ISBN13: 9781473704787
Chapters 11 (exerpts up to page 331), 12, 15 (up to page 448), 17 (except Lindhal's pricing of a public good)
Supplementary readings (not part of the exam material)
Economics of information:
- Akerlof, George (2001), “Behavioral Macroeconomics and Macroeconomic Behavior”, Nobel Prize Lecture
- Stiglitz, Joseph (2001) “Information and The Change in The Paradigm in Economics”, Nobel Prize Lecture
- Akerlof, George (1970), “The market for lemons”, Quarterly Journal of Economics.
- Freixas and Laffont (1990) “Optimal banking contracts” in Essays in Honor of Edmond Malinvaud, Vol. 2, Macroeconomics, ed. P. Champsaur and al. MIT Press, Cambridge.
- Baron and Myerson (1982), “Regulating a Monopolist with Unknown Costs,” Econometrica, 50: 911-930.
- Maskin and Riley (1984), “Monopoly with Incomplete Information,” Rand Journal of Economics, 15: 171-196.
- Mussa, M., and S. Rosen, (1978), “Monopoly and Product Quality,” Journal of Economic Theory,” 18: 301-317.
- Stiglitz, Joseph (1974). "Incentives and Risk Sharing in Sharecropping". The Review of Economic Studies. 41 (2): 219–255
- Holmstrom, B. and J. Tirole (1997). “Financial intermediation, loanable funds, and the real sector.”, Quarterly Journal of Economics 112:663-692.
General equilibrium:
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Alchian, A., and H. Demsetz (1972) “Production, Information Costs and Economic Organization”,
American Economic Review, 72, 2. -
Schmalensee, R. and R.. Stavins (2013) "The SO2 Allowance Trading System: The Ironic History of a Grand Policy Experiment."
Journal of Economic Perspectives, 27, 1.