Information, Justice and the Political Process

Volledige vakbeschrijving

The course gives an introduction to the microeconomic theory of uncertainty and information, which studies how uncertainty and information (e.g., about the quality of a good) affect decisions, interaction, and economic outcomes. We cover the main issues of the field, for example adverse selection and moral hazard. As applications, we study among others the decision of whether or not to take out insurance, the inference of information from market prices, and the optimal design of job contracts.