AY 2020-2021
Microeconomics II Mock test for the 2nd part Prof. Nicola Dimitri
You can use the calculator if needed. Smartphones, lecture notes and books are not allowed. You have 1 hour and 30 minutes.
1. (11 points)
find first and second best contract (quantity and expenditure), in the buyer-seller model seen in class when
v (q )= q 1+q
.
2. (11 points)
Find first and second best contract in the principal-agent model seen in class when
U (w)= √ w
, andV ( q−w )
=q−w3. (11 points)
Consider two agents,
1
and2
. Agent1
can be of just one typeθ
1 while player2
can be of two types,θ
2' andθ
2' ' . The two agents have the following preferences over three alternativesX = { x , y , z }
.Discuss if agent 2 has an incentive to reveal his true preferences with the following Social Choice Functions:
a)
f ( θ
1, θ
2') =x , f ( θ1,θ
2'') = y
b)
f ( θ
1, θ
2' ') = y , f ( θ1,θ
'2) = x
c)
f ( θ
1, θ
2') =z , f ( θ1,θ
2'') = y
d)
f ( θ
1, θ
2') = y , f ( θ1, θ
2' ') = z
e)
f ( θ
1, θ
2') =x , f ( θ1,θ
2'') = z
f)
f ( θ
1, θ
2') =z , f ( θ1,θ
2'') = x
1
