|Year of offer||Not available in 2019|
|Subject level||Undergraduate Level 3|
|Fees||Subject EFTSL, Level, Discipline & Census Date|
This subject is concerned with the economics of asymmetric information, when agents may have private knowledge, take hidden actions, and attempt to manipulate the knowledge, information and incentives of others. Using game theory and information economics it will cover the main techniques and results of principal-agent theory and contract theory. It will introduce students to the principles of economic design in asymmetric information environments. These tools will be applied to a variety of topics and case studies, performance incentives, regulation, government procurement, structure of insurance markets, monopoly behaviour, agricultural contracts and share cropping.
Intended learning outcomes
- Understand the concepts of economics of information and be able to apply them to explain the contracts within organisations
- Analyse a firm’s behaviour under different contractual structures
High level of development: problem solving.
Moderate level of development: application of theory to practice; interpretation and analysis; critical thinking; evaluation of data and other information.
Some level of development: statistical reasoning; receptiveness to alternative ideas.
Eligibility and requirements
|Code||Name||Teaching period||Credit Points|
Recommended background knowledge
Please refer to Prerequisites and Corequisites.
Core participation requirements
The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.
Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home
- A 2-hour end-of-semester examination (50% or 60%)
- A mid-semester examination in Week 7 (20% or 30%)
- An in-course assignment totalling no more than 2000 words due in Week 3, 5, 9, 11 (20%)
- The final mark will be calculated by weighting the end-of-semester exam at 50% and the mid-semester exam at 30% OR by weighting the end-of-semester exam at 60% and the mid-semester exam at 20%, whichever gives the higher mark to the student.
Dates & times
Not available in 2019
Time commitment details
Estimated total time commitment of 170 hours
You will be advised of prescribed texts by your lecturer.
- Related Handbook entries
- Breadth options
- Available through the Community Access Program
About the Community Access Program (CAP)
This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.
Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.
- Available to Study Abroad and/or Study Exchange Students
This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.