In this lecture, we look at the problems caused by adverse selection, first in product markets, then in insurance markets, then in labour markets.
In this lecture we look at net present values, and choices across time.
The second problem set, on welfare, externalities and public goods.
In this lecture we introduce public goods, describe the conditions for their optimal provision, and show how we may discover the strength of people’s preferences for them.
In this half of the lecture we look at externalities and a few mechanisms to lessen their impact.