I.
| Introduction |
II.
| The Mean and the Variance |
III.
| Uncertainty and Consumer Behavior |
| A. | Risk Aversion | | 1. | Managerial Decision with Risk-Averse
Consumers | | | 1. | Product Quality | | | 2. | Chain Stores | | | 3. | Insurance | B. | Consumer Search |
|
IV. | Uncertainty and the Firm |
| A. | Risk Aversion | B. | Producer Search | C. | Profit-Maximization |
|
V. | Uncertainty and the Market |
| A. | Asymmetric Information | | 1. | Adverse Selection | | 2. | Moral Hazard | B. | Signaling and Screening |
|
VI. | Auctions |
| A. | Types of Auctions | | 1. | English Auction | | 2. | First-Price, Sealed-Bid Auction | | 3. | Second-Price, Sealed-Bid Auction | | 4. | Dutch Auction | B. | Information Structures | | 1. | Independent Private Values | | 2. | Correlated Value Estimates | C. | Optimal Bidding Strategies for Risk-Neutral Bidders | | 1. | Strategies for Independent
Private Value Auctions | | 2. | Strategies for Correlated Values
Auctions | D. | Expected Revenues in Alternative Types of Auctions |
|
VII. | Answering the Headline |
VIII.
| Summary |
IX.
| Key Terms and Concepts |
X.
| Conceptual and Computational Questions |
XI.
| Problems and Applications |
XII.
| Case-Based Exercises |
XIII.
| Selected Readings |
