Course Objectives: This course completes the topic of General Equilibrium theory, and introduces you to market failures such as asymmetric information, externalities, public goods, and agency problems. Topics include: General Equilibrium with production and with uncertainty; models of asymmetric information in markets, including screening, signaling, and lemons; markets with externalities or public goods; optimal contracts, principal-agent models with hidden actions, and principal-agent models with hidden information; mechanism design and the revelation principle; and auction markets.