Most helpful positive review
40 of 45 people found the following review helpful
on February 5, 2006
Tirole's book is one of the very few formal texts to cover corporate finance theory. It is structured around a few basic models which are changed/extended in myriad ways in order to illuminate this or that topic. This allows the reader to cover a lot of ground with minimal investment.
I have taught a master's level finance course based on the notes that the book is built on and found it a pleasure.
I found it useful to cover some basics of principal agent theory before covering Tirole's material, as some knowledge of information economics is assumed. Laffont and Martimort's book makes the transition smooth as they essentially use the same basic two action two outcome setup as Tirole's first couple of chapters.
I very much doubt that a superior book will appear on the shelves for some time, that is of course, until Tirole decides to update his text some years from now.