Objectif du cours
This course provides a formal discussion of several types of market failures. In the first half of the course our focus will be on market equilibrium with public goods and externalities. We will review the motives and mechanisms to improve the equilibrium, and restore efficiency when possible. The second half will discuss equilibrium under information asymmetries and also review some mechanisms which aim to deal with inefficiencies resulting from moral hazard and adverse selection.
A good understanding of microeconomic theory (as in Microeconomics L3 or similar). A good command of multivariate calculus is necessary.
Lecturer : Sinan Sarpca
Hindriks, J. and Myles, G. (2006) Intermediate Public Economics, The MIT Press.
Macho-Stadler, I. and Perez-Castrillo, D. (2001) An Introduction to the Economics of Information: Incentives and Contracts, Oxford University Press