"Students will find this a very useful introduction to the ideas of contract theory. Salanie has managed to summarize a large amount of material in a relatively short number of pages in a highly accessible and readable manner." -- Oliver Hart, Professor of Economics, Harvard University "The Economics of Contracts offers an excellent introduction to agency models. Written by one of the leading young researchers in contract theory, it is rigorous, clear, concise and up-to-date. Researchers and students who want to learn about the economics of incentives will want to read this primer." -- Jean Tirole, Institut d'Economie Industrielle, Universite des Sciences Sociales, France Although it is one of the major achievements in the history of economic thought, the general equilibrium model is not completely satisfactory as a descriptive tool. In the 1970s several economists settled on a new way to study economic relationships that is often called the "economics of...

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