The firm

Readings due before class on Wednesday, February 20, 2019

Required

• Introduction and 6.1-6.14 in Economy, Society, and Public PolicyThe CORE Team, Economy, Society, and Public Policy, 2019, https://www.core-econ.org/espp/.
  
  
• CORE team, “Richard Freeman: You can’t outsource responsibility”
• Marginal Revolution University, Asymmetric Information and Used Cars
• Marginal Revolution University, Asymmetric Information and Health Insurance
• Marginal Revolution University, Moral Hazard
• Marginal Revolution University, Solutions to Moral Hazard
• Look at these real-life examples of information asymmetries and principal-agent problems:
  • Sam Dolnick, “Air-Conditioners That Run When Nobody’s Home,” New York Times, August 15, 2010
  • Ceci Connolly, “U.S. worker’s case reveals how drug cartels get help from this side of border,” Washington Post, September 12, 2010
  • Rob Ferguson, “Ontario’s winter roads ‘less safe’ since privatization: auditor,” The Star, April 29, 2015