Doctoral Program in Economics and Management
Scuola Superiore Sant'Anna, Pisa

Agency Theory, February 2010
Prof. Salvatore Modica

Syllabus:

• Preface: Expected Utility Theorem, Risk Aversion
• Adverse Selection in Competitive Environments: Akerlof-type Market Failure
• Principal-Agent Model: Moral Hazard (Hidden Action)
• Principal-Agent Model: Adverse Selection (Hidden Information)
• Introduction to Mechanism Design: Formalization, Revelation Principle; Auctions and the Revenue Equivalence Theorem; Bargaining and the Myerson-Satterthwaite Theorem.