Contract Theory

Dates and Times

Syllabus

1. Introduction
2. Static Moral Hazard
3. Dynamic Moral Hazard
4. Adverse Selection Models
5. Mechanism Design
6. Relational Contracts and Career Concerns
7. Incomplete Contracts
8. Behavioral Contract Theory

Time Table

Information

The main part of this lecture will give a solid introduction into the main methods and some applications of contract theory in order to provide graduate students with a thorough understanding of the tools of contract theory and to enable them to use these tools in their own research.

In the last two weeks we will have student presentations (by doctoral students) of several papers on advanced topics.

There will be a written examination (two hours) at the end of the class.

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

• to participate actively in lectures and classes,
• to read the original literature,
• to regularly solve demanding problem sets,
• and to give a presentation on one paper in the second part of the course.

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 course is directed to doctoral students and M.A. students.

The course will be taught in English.

Reading Lists

• Syllabus (PDF-file, 66 kB)

Lecture Notes

You can download the lecture notes here (LSF - you have to be logged in to download the files).

You can download the problem sets here  (LSF - you have to be logged in to download the files).

Exams

• WS 02/03 (PDF-file, 121 kB)
• WS 03/04 (PDF-file, 42 kB)
• SS 06 (PDF-file, 34 kB)
• SS 07 (PDF-file, 63,3 kB)
• SS 08 (PDF-file, 50 kB)