Prof Gilat Levy SAL 4.31

Prof Philippe Aghion SAL 2.30

This course is available on the MSc in Econometrics and Mathematical Economics, MSc in Economics, MSc in Economics (2 Year Programme), MSc in Environmental Economics and Climate Change and MSc in Environmental Policy, Technology and Health (Environmental Economics and Climate Change) (LSE and Peking University). This course is available with permission as an outside option to students on other programmes where regulations permit.

Students on the MSc Econometrics and Mathematical Economics programme must have completed the Pre-sessional Course for MSc EME (EC451).

All other students must have completed the Introductory Course in Mathematics and Statistics (EC400).

In exceptional circumstances, students may take this course without EC400 provided they meet the necessary requirements and have received approval from the course conveners (via a face to face meeting), the MSc Economics Programme Director and their own Programme Director. Contact the Department of Economics for more information (econ.msc@lse.ac.uk) regarding entry to this course.

The course will cover topics from: social learning, reputation and career concerns, strategic information transmission, contract theory, incomplete contracts, the economics of moral hazard and adverse selection in strategic settings,  dynamic theory of incentive contracts, optimal auctions and regulation, and the theory of mechanism design with multiple agents (multiple agents screening and common agency).

20 hours of lectures and 10 hours of seminars in the AT. 20 hours of lectures and 9 hours of seminars in the WT. 1 hour of seminars in the ST.

This course is delivered through a combination of classes and lectures totalling a minimum of 60 hours across Autumn Term, Winter Term, and Spring Term.

There will be a reading week in Week 6 of Winter Term only (no lectures or classes that week)

Two marked assignments per term.

No one book covers the entire syllabus; a list of references will be provided at the start of the course. The following textbooks provide a treatment of part of the material presented in the course: Jean-Jacques Laffont, The Economics of Uncertainty and Information, MIT Press; D Fudenberg & J Tirole, Game Theory, MIT Press; Jean-Jacques Laffont & Jean Tirole, A Theory of Incentives in Procurement Regulations, MIT Press; Bernard Salanié, The Economics of Contracts: A Primer, MIT Press, Bolton, P., and M. Dewatripont (2005), Contract Theory, MIT Press, Hart, O. (1995), Firms, Contracts, and Financial Structure, Oxford University Press.

Assessment path 1
Exam (100%, duration: 2 hours, reading time: 15 minutes) in the spring exam period.

Assessment path 2
Exam (50%, duration: 2 hours, reading time: 15 minutes) in the spring exam period.
Essay (50%, 6000 words) in the ST.

Non-MSc Econometrics and Mathematical Economics students must follow Assessment path 2.

MSc Econometrics and Mathematical Economics students can follow Assessment path 1 or 2.