Introductory Information Economics: Incentives and Contracts: Incentives and Contracts

Author: Innes McAfee
Publisher:
Publish Date: 2004-01-01
Features: "An Introduction to Information Economics: Incentives and Contracts" is an outstanding choice as a textbook in information economics. The book has the following characteristics: First, it presents the general theories and models of information economics, which consistently connect several fields of economics and hold certain methodological significance, thereby broadening people's perspective on economics. The book systematically summarizes and organizes recent literature in information economics, forming classic general theories and models of information economics, which represent the theoretical development of the information paradigm in economics. Second, the book has a rigorous structure, smooth exposition, and organic connections between chapters, progressing in a step-by-step manner, making it suitable as a professional textbook for master's and doctoral students in economics, business administration, and high-level undergraduates in China. In the introductory chapter, the book discusses the three main paradigms of information economics: moral hazard, adverse selection, and signaling. The content is self-contained and does not require prior knowledge beyond introductory microeconomics and calculus. In Chapter 2, it elaborates on the basic models of information economics and outlines the development of intertemporal contracts. The next three chapters start from the basic models of symmetric information and introduce asymmetric information assumptions, following the rational assumptions of economics, progressively analyzing and deriving relevant models, and connecting them to real economic behavior to draw intuitive knowledge and conclusions. In addition to the introduction, each chapter is accompanied by exercises, where the difficulties in the exercises correspond to the key theoretical elements of each chapter, aiming to strengthen students' mastery of the knowledge points. At the end of the book, there are additional exercises, solutions to exercises, a glossary of terms, and a mathematical appendix.