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ES50077: Incentives & performance

[Page last updated: 02 August 2022]

Academic Year: 2022/23
Owning Department/School: Department of Economics
Credits: 6 [equivalent to 12 CATS credits]
Notional Study Hours: 120
Level: Masters UG & PG (FHEQ level 7)
Period:
Semester 2
Assessment Summary: CW 30%, EX 70%
Assessment Detail:
  • Coursework (CW 30%)
  • Exam (EX 70%)
Supplementary Assessment:
Like-for-like reassessment (where allowed by programme regulations)
Requisites:
Learning Outcomes: On successful completion of the unit students should be able to:
* Demonstrate awareness and understanding of the key concepts of moral hazard, adverse selection, signalling, mechanism design and contracts;
* Apply the analytical tools and techniques to formally model and analyse and critically discuss the consequences of information asymmetries in a variety of applied settings.

Aims: To provide a systematic and analytical review of the developments in the economics of information.
To enable students to comprehend the effects of asymmetric information on the incentives and performance of agents in various situations of economic/financial interactions.

Skills: Ability to understand and reflect the causes and consequences of moral hazard and adverse selection;
Ability to think analytically and develop rigorous arguments in the context of imperfect information;
Ability to select and use appropriate concepts and ideas to produce a coherent analysis of information diffusion conditions in a variety of market settings.

Content: Moral hazard, Adverse selection, Signalling, Mechanism design, Performance evaluation and Incentive contracts. Applications from Industrial Organization, Banking and Finance.

Programme availability:

ES50077 is Optional on the following programmes:

Department of Economics

Notes:

  • This unit catalogue is applicable for the 2022/23 academic year only. Students continuing their studies into 2023/24 and beyond should not assume that this unit will be available in future years in the format displayed here for 2022/23.
  • Programmes and units are subject to change in accordance with normal University procedures.
  • Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.
  • Find out more about these and other important University terms and conditions here.