This book gives the reader a unique survey of the most recent advances in economic theory.

This book comprises the second volume of papers presented at the Sixth World congress of the Econometric Society in Barcelona in August 1990. With papers from the world's leading specialists, it gives the reader a unique survey of the most recent advances in economic theory.

1. Behaviour under risk: recent developments in theory and applications Lawrence Epstein
2. Financial contracting theory Milton Harris and Arthur Raviv
3. Collusion and the theory of organisations Jean Tirole
Discussion of Harris/Raviv and Tirole Patrick Bolton
4. The nature of incomplete security markets Darrell Duffle
5. Incomplete financial markets and indeterminacy of competitive equilibrium David Cass
6. Endogenous fluctuations Roger Guesnerie and Michael Woodford
7. Equilibrium in competitive, infinite dimensional settings Larry E. Jones
Discussion of Jones Andreu Mas-Collel.