Class 18: Hidden Information: Adverse Selection, Signaling, and Screening

Textbook reading: Kreps, Chapter 20, “Hidden Information: Adverse Selection, Signaling, and Screening.” Section 20.1 works a spreadsheet example you may skim; the logic is in 20.2 through 20.5. Problem 20.1 is Q52 and Problem 20.2 is Q53, so do not read their solutions before class.

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