Eco211A/271A, Fall 2013
Simon Board
Solutions to Homework 2
November 6, 2013
Question 0 (Normal learning models)
We have z1 N (m0 , 1/h0 + 1/h ) and z1 | N (, 1/h ). By Bayes rule
f (|z1 ) =
=
f (z1 |
Eco211A/271A, Fall 2013
Simon Board
Solutions to Practice Problems 2: Asymmetric Information
November 25, 2013
1
Single-Agent Problems
1. Nonlinear Pricing with Two Types
12
(a) Take type 1 . (IR1 ) s
Eco211A/271A, Fall 2013
Simon Board
Solutions to Practice Problems 1: Moral Hazard
November 6, 2013
1. Contracting under Coercion
(a,b) The rst order approach is valid because the agents utility is co