Microeconomic Theory III
This MIT graduate course examines how individuals make decisions under certainty and uncertainty, and how those decisions aggregate into markets and institutions. Topics include risk sharing and financial markets, contracts and information economics, village economies and national development, models incorporating money and credit, and trade with spatial and differentiated commodities. The course builds on core microeconomic theory to analyze real-world settings where information is incomplete and risk must be allocated among parties. Materials on MIT OpenCourseWare include lecture notes, problem sets, and readings drawn from academic papers in contract theory and development economics. No certificate is offered, but all course materials are free to access and reuse under MIT's open license. The course suits students who already have a foundation in microeconomic theory and want to see it applied to financial contracts, credit markets, and developing economies.