Lecture 23
 - Asymmetric Information: Silence, Signaling and Suffering Education

Lecture 23 - Asymmetric Information: Silence...

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Lecture 24 - Asymmetric Information: Auctions and the Winner's Curse

We discuss auctions. We first distinguish two extremes: common values and private values. We hold a common value auction in class and discover the winner’s curse, the winner tends to overpay. We discuss why this occurs and how to avoid it: you should bid as if you knew that your ...  Show more

Lecture 22 - Repeated Games: Cheating, Punishment, and Outsourcing

In business or personal relationships, promises and threats of good and bad behavior tomorrow may provide good incentives for good behavior today, but, to work, these promises and threats must be credible. In particular, they must come from equilibrium behavior tomorrow, and henc ...  Show more

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