The economics of contracts and game theory as well as applications of theory
AI2116 Contract Theory 7.5 credits
Course offerings are missing for current or upcoming semesters.
Headings with content from the Course syllabus AI2116 (Spring 2009–) are denoted with an asterisk ( )
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
No information inserted
Equipment
No information inserted
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
A, B, C, D, E, FX, F
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
No information inserted
Opportunity to raise an approved grade via renewed examination
No information inserted
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
Registered students find further information about the implementation of the course in the course room in Canvas. A link to the course room can be found under the tab Studies in the Personal menu at the start of the course.
Offered by
Main field of study
This course does not belong to any Main field of study.
Education cycle
Second cycle
Add-on studies
No information inserted
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.