This course discusses the financial crisis of 2008-9, developments since that time, and the future of finance. We consider how regulation, technology, and the changing world economy will create challenges and opportunities. We have guest speakers for about half of the classes.
Microeconomic concepts relevant to decision making. Topics include: competitive market clearing, price discrimination; general equilibrium; risk aversion and sharing, capital market theory, Nash equilibrium; welfare analysis; public choice; externalities and public goods; hidden information and market signaling; moral hazard and incentives; auction theory; game theory; oligopoly; reputation and credibility. Prerequisites: ECON 50 and MATH 51 or equiv.