Objectives When finishing learning this unit, you should be able to: Deal with some kinds of problems encountered in business. Complain and apologize by letter, fax or e--mail
8. Financial Markets a. Insurance Markets b. Moral Hazard C. Adverse Selection with one price contracts d. Simple Financial Markets-Comparative Statics e. Option Pricing and Redundant Assets
Marciano Siniscalchi October 28, 1999 Introduction [Again, by and large, I will follow OR, Chap. 8, so will keep these notes to a minimum.] Review of key definitions Recall our three payoff aggregation criteria: discounting, i.e