QAMO 3015 - Business Economics II

This course is the continuation of a survey of the applications of economic analysis to business decision-making. Calculus is a prerequisite and will be used throughout. The first part of the course studies game theoretic models of competition including quantity-choice games, analysis of entry, exit and equilibrium industry structure, and spatial preference and spatial competition. The second part of the course studies principal agent models, introducing ideas of hidden action and moral hazard, participation and incentive constraints, and value-maximizing contracts.