Microeconomic Theory and Applications
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Contract Theory

If you want to take the course as a M12, you have to register with the ISC between 25.11.-06.12.2019!

For the M6 course and PhD students no (pre)registration is required.

The course is blocked in the first weeks of the summer term with six hours of lectures and classes per week.

The course is designed for master students and first year PhD students. It consists of two parts:

  • A lecture with classes that offers a solid introduction into the main methods and some applications of contract theory.
  • A seminar on “contract theory” in which more recent developments in contract theory are discussed. Everybody who wants to participate in the seminar must attend the first meeting on tba.

Master students can either take the entire course (M12) or the lecture only (M6). PhD students with prior knowledge of contract theory can also participate in the seminar only.

The course provides graduate students with a thorough understanding of the tools of contract theory and enables them to use these tools in their own research.

Participants should have a good knowledge of Microeconomics and Game Theory. They should be willing

  • to participate actively in lectures, classes and the seminar,
  • to read the original literature,
  • to regularly solve demanding problem sets

All participants have to hand in individual solutions to all problem sets before these problems are discussed in class. At most one problem set may be handed in late.

The schedule of the lectures is here (link will come soon). The topics for the seminar will be discussed in the first class.

The seminar is blocked on July 2. & 3. of 2020, and takes place at LMU.

Students who participate in the lecture only (M6) have to write a two hour examination. Master students can obtain 6 credit points that also count for the research track.

Information for students who take the full course (M12, lecture plus seminar):

  • You have to register with the ISC between 25.11.-06.12.2019.
  • Master students are assigned a paper that they present in the seminar. Furthermore, they have to write a term paper on their assigned topic (for which they might be given additional literature). They also have to participate in the lecture that builds the foundation for the seminar, but they do not have to write the exam.

Outline of the lecture

  1. Introduction
  2. Moral Hazard
  3. Adverse Selection
  4. Mechanism Design
  5. Incomplete Contracts

Reading List

Syllabus

Lecture Notes and Problem Sets

You can download the lecture notes and problem sets in the LSF - you have to be logged in to download the files.

Exam

The exam takes place on tba.

You have to register for the exam in the LSF.

Doctoral students

Doctoral students do not have to write a term paper.

  • If you are a member of the GRK productivity, then the lecture counts as the lecture "Contracts, Incentives and Behavior" if you pass the exam (120 minutes), while the seminar counts as the "Topics Course: Incentives, Innovation and Behavior" if you do a presentation and participate actively in the discussion.
  • If you are a member of EBE, then the lecture counts as the "Field Course: Contract Theory" if you pass the exam (120 minutes), while the seminar counts as a reading course if you do a presentation and participate actively in the discussion.
  • If you are a regular doctoral student who does not participate in any of these programs, you can get credit for one doctoral course by participating in the lecture on "Contract Theory" if you pass the exam (120 minutes). You do not have to participate in the seminar.