Risk, Uncertainty and Information

Lecturer: Michalis Drouvelis

The course deals with questions how economic agents make decisions in situations under risk and uncertainty. The topics which will be discussed are: foundations of expected utility theory and its applications, violations of expected utility axioms, alternative models (such as Prospect Theory) and their applications, measurement of social preferences using a number of simple experimental games and their policy implications.

Assessment

A 1500-word essay (25%) and a 2-hour written examination (75%)