This is a graduate textbook on the theory of contracting under asymmetric information, a key part of modern microeconomic theory. It examines the characteristics of optimal contracts when one party has certain relevant knowledge that the other party does not. The various problems are presented in the same framework to allow easy comparison of the different results. This updated second edition substantially extends the exercises that test students' understanding of the material covered in each chapter.If the agent tries to profit from information by keeping it private, the principala#39;s problem is to find a way to reduce her ... In order to see some of the consequences of an adverse selection problem, consider the market for second- hand carsanbsp;...
|Title||:||An Introduction to the Economics of Information|
|Author||:||Inés Macho-Stadler, J. David Pérez-Castrillo|
|Publisher||:||Oxford University Press on Demand - 2001|