Description
Book SynopsisWhen incentives work well, individuals prosper. When incentives are poor, the pursuit of self-interest is self-defeating. This book is wholly devoted to the topical subject of incentives from individual, collective, and institutional standpoints. This third edition is fully updated and expanded, including a new section on the 200708 financial crisis and a new chapter on networks as well as specific applications of school placement for students, search engine ad auctions, pollution permits, and more. Using worked examples and lucid general theory in its analysis, and seasoned with references to current and past events, Incentives: Motivation and the Economics of Information examines: the performance of agents hired to carry out specific tasks, from taxi drivers to CEOs; the performance of institutions, from voting schemes to medical panels deciding who gets kidney transplants; a wide range of market transactions, from auctions to labor markets to the entire economy. Suitable for advan
Table of Contents1. Equilibrium, efficiency, and asymmetric information; 2. Basic models and tools; 3. Hidden action; 4. Corporate governance; 5. Hidden characteristics; 6. Auctions; 7. Voting and preference revelation; 8. Public goods and preference revelation; 9. Matching; 10. Networks; 11. General competitive equilibrium.
