230290 :Information Economics (CentER)

General info

Instruction language English
Type of Instruction lectures (Lecture schedule)
Type of exams the course grade is determined by 4 homework (20%) and a final written exam (80%) (Examination schedule)
Course load:3 ECTS credits
Registration:via Blackboard
Blackboard InfoLink to Blackboard (When you see 'Guest are not allowed in this course', please login at Blackboard itself)


dr. F. Castiglionesi


This course covers the main issues concerning information theory and contract theory with emphasis to their applications in finance. The course will start discussing the abstract mechanism design problem and the implication for the theory of contracts. Indeed, contract theory uses the tools of mechanism design to study how markets and organizations can be designed in order to achieve desirable economic goals. In this framework we study the classic models with hidden information (screening and signaling models) and hidden action (moral hazard models).


This module is compulsory for students following the Research Master in Accounting and the Research Master in Finance program.

Before enrolling all non-CentER students should ask permission from the Director of Graduate Studies in Business. Please send your request for permission to CentER Graduate School at center-gs@uvt.nl.

This course was formerly offered under the name: Micro 5 (Finance)

Compulsory Reading

  1. Mas Colell, A., M.D. Whinston and J.R. Green, Microeconomic Theory, New York, Oxford University Press, 1995.
  2. Bolton P. and M. Dewatripont, Contract Theory, Cambrigde, MIT Press, 2005.
  3. Distribution of compulsory class notes covering the material taught

Compulsory for

  • Research Master in Business: Accounting ( 2017 )
  • Research Master in Business: Finance ( 2014, 2015, 2016, 2017 )

Recommended option for

  • Research Master in Business: Accounting ( 2014, 2015, 2016 )