Course Descriptions

Course catalog descriptions for courses offered in all currently published terms.

Finance

 
FIN 865 Asymmetric Information
  3 hours Terms Offered: F13, F14
  Advisory Prerequisites: Doctoral standing 
   
  Asymmetric Information --- This course is designed to introduce students to the tools used in modeling asymmetric information and to expose them to applications in different areas. The course begins with an introduction to the main tools used in game theory, Bayesian Nash equilibrium and perfect Bayesian equilibrium. Adverse selection and moral hazard, the two main approaches to modeling asymmetric information is contract theory, are discussed. For much of the course, the focus is on applications of asymmetric information models drawn from different areas, including disclosure of information (accounting), external financing (finance), technology licensing (information technology), pricing (marketing), and auctions (of interest to several areas).