Universität Wien

040249 UK Contract Theory (MA) (2018S)

8.00 ECTS (4.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work
Moodle

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

  • Thursday 01.03. 15:00 - 16:30 Studierzone
  • Friday 02.03. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 08.03. 15:00 - 16:30 Studierzone
  • Friday 09.03. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 15.03. 15:00 - 16:30 Studierzone
  • Friday 16.03. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 22.03. 15:00 - 16:30 Studierzone
  • Friday 23.03. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 12.04. 15:00 - 16:30 Studierzone
  • Friday 13.04. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 19.04. 15:00 - 16:30 Studierzone
  • Friday 20.04. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 26.04. 15:00 - 16:30 Studierzone
  • Friday 27.04. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 03.05. 15:00 - 16:30 Studierzone
  • Friday 04.05. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 17.05. 15:00 - 16:30 Studierzone
  • Friday 18.05. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 07.06. 15:00 - 16:30 Studierzone
  • Friday 08.06. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 14.06. 15:00 - 16:30 Studierzone
  • Friday 15.06. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Friday 22.06. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock
  • Thursday 28.06. 15:00 - 16:30 Studierzone
  • Friday 29.06. 13:15 - 14:45 Seminarraum 15 Oskar-Morgenstern-Platz 1 3.Stock

Information

Aims, contents and method of the course

Which contract should an employer sign with a new employee if she cannot observe how much he works? Why should a person obtain a bachelor's degree or MBA if it doesn't give her valuable skills for the labour market? Can a health insurance company tell if you have healthy habits by observing which insurance contract you choose? Classic contract theory deals with these questions.

Behavioural contract theory assumes that people are affected by different biases (for example, overconfidence or loss aversion) when making decisions and assesses how the results of classic contract theory change in the presence of such biases. Behavioural contract theory also shows that some contracts arise only if people are affected by some biases.

The aim of the course is to give the students an understanding of classical contract theory and of some recent developments in behavioural contract theory. The students will also practice preparing and delivering a presentation.

Assessment and permitted materials

The final grade is based on the grades for the final exam (40%), problem sets (40%), and presentation of a paper (20%).

Minimum requirements and assessment criteria

Passing grade is 50%.

Examination topics

Classic contract theory
1. Games of incomplete information and Bayes-Nash equilibria
2. Hidden information: Adverse selection
3. Hidden information with action to reveal info: Signalling
4. Hidden action: Moral hazard

Behavioural contract theory
5. Relevant behavioural models
6. Behavioural adverse selection
7. Behavioural moral hazard
8. Exploitative contracting

Reading list

Main textbook for classic part:
Bolton, Patrick, and Mathias Dewatripont. Contract Theory. 2005

Main article for behavioural part:
Koszegi, Botond (2014): “Behavioral Contract Theory”, Journal of Economic Literature, 52, 1075–1118.

Association in the course directory

Last modified: Mo 07.09.2020 15:29