Risk, Uncertainty and Information

Module Lead: Michalis Drouvelis

Credits: 10

Introduction and module objectives:

The module deals with questions of how economic agents make decisions in situations under risk and uncertainty. Topics discussed may include: foundations of expected utility theory and its applications, violations of expected utility axioms, alternative models and their applications, measurement of social preferences using a number of simple experimental games and their policy implications.

Learning Outcomes:

By the end of the module students should be able to:

  • demonstrate comprehensive knowledge and understanding of models and their application in a variety of decision making situations;
  • demonstrate a critical understanding of concepts such as equilibrium and uncertainty;
  • critically analyse current issues of decision-making and their applications.

Assessment:

  • 1500 word essay (30%)
  • Two hour written unseen examination (70%)