Introduction to topics and tools of modern theory of information.
1. Games with Incomplete Information: elements of a game of incomplete and/or asymmetric information, Bayes-Nash equilibrium, perfect equilibrium.
2. Adverse selection and moral hazard: unobservable characteristics (screening and signalling); unobservable actions: ex ante, interim and ex post efficiency.
3. Introduction to contract theory: menus of contracts, guaranties, bilateral contracts: insurance, credit, labor.
4. Introduction to mechanism design: Bayesian implementation with transferable utility, applications: monopoly, auctions, public goods, bilateral trade. Dominant and ex post implementation with transferable utility