The economics of contracts and game theory as well as applications of theory
AI2116 Contract Theory 7.5 credits
Information per course offering
Course offerings are missing for current or upcoming semesters.
Course syllabus as PDF
Please note: all information from the Course syllabus is available on this page in an accessible format.
Course syllabus AI2116 (Spring 2009–)Content and learning outcomes
Course contents
Intended learning outcomes
The overall aim of this course is to give you a better understanding of the economics of contracts and how to apply this knowledge in a practical situation.
After you have finished the course you should be able to:
• Describe the notion and consequences of asymmetric information
• Identify situations characterized by hidden action and situations characterized by hidden characteristics, making in-depth descriptions of the problems that may arise and suggest solutions to these problems. You should be able to do this for situations occurring in real life and base your reasoning on sound theoretical grounds.
Describe and identify situations where complete contracts are not feasible, explain why and suggest solutions based on theory.
Literature and preparations
Specific prerequisites
Financial Economics (AI2115)
Recommended prerequisites
Equipment
Literature
George Hendrikse: Ecomomics and Management of Organizations – Co-ordination, Motivation and Strategy (Ch. 1-10)
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
Grading scale
Examination
- INL1 - Exercises, 3.0 credits, grading scale: P, F
- TEN1 - Examination, 4.5 credits, grading scale: A, B, C, D, E, FX, F
Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.
The examiner may apply another examination format when re-examining individual students.
Other requirements for final grade
Written examination (4,5 cr, grade: A-F) and term paper (3 cr, grade: Pass+, Pass, Fail). Both examination and term paper influence the final grade.
Opportunity to complete the requirements via supplementary examination
Opportunity to raise an approved grade via renewed examination
Examiner
Ethical approach
- All members of a group are responsible for the group's work.
- In any assessment, every student shall honestly disclose any help received and sources used.
- In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.
Further information
Course room in Canvas
Offered by
Main field of study
Education cycle
Add-on studies
Supplementary information
This course will be given for the last time spring 2009.
Instead we will offering Economics of Real and Financial Services Contracts, AI2136, from 2010.