Courses Bachelor Display 2023-2024
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| Course title | Economics of Uncertainty and Information | ||||||||||||||||||||||||||||||||||||||||||||||||
| Course code | EBC2108 | ||||||||||||||||||||||||||||||||||||||||||||||||
| ECTS credits | 6,5 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Assessment | Whole/Half Grades | ||||||||||||||||||||||||||||||||||||||||||||||||
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| Level | Advanced | ||||||||||||||||||||||||||||||||||||||||||||||||
| Coordinator |
Arkadi Predtetchinski For more information: a.predtetchinski@maastrichtuniversity.nl |
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| Language of instruction | English | ||||||||||||||||||||||||||||||||||||||||||||||||
| Goals |
(1) Get familiar with the microeconomic theory of uncertainty and information, its conclusions, limitations, and main applications;
(2) Acquire a working knowledge of techniques to analyze problems of choice under uncertainty and of asymmetric information. |
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| Description |
This course, which falls under the area of mathematical economics and belongs to the Bachelor program Econometrics and Operations Research, gives an introduction to the microeconomic theory of uncertainty and information. In the course, we study basic elements of the role that information plays in the decisions of individuals and firms, as well as in the working of markets. This is done by combining elementary methods of microeconomics with those from elementary probability theory. First, we introduce expected utility maximization, the standard model of choice under uncertainty. We then use this model to study numerous important issues arising from incomplete information, such as attitudes toward risk, demand for insurance, portfolio selection, value of information, (in)efficiency of markets, moral hazard, and adverse selection.
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| Literature |
Bikhchandani, S., J. Hirshleifer, and J.G. Riley (2013), The Analytics of Uncertainty and Information, 2nd edition, Cambridge University Press, Cambridge.
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| Prerequisites |
TRANSITIONAL REGULATIONS:
This course is in transition within the: * pre-master Economics * pre-master Human Decision Science The following rule applies to students who started one of the following programmes prior to academic year 2023-2024: * pre-master Economics * pre-master Human Decision Science TRANSITIONAL REGULATION (EBC2108): Repeat the course (note that its title has changed to "Economics of Uncertainty and Information") or replace with Intermediate Microeconomics for Pre-master (EBC2197). See the Transitional Regulations section in the Bachelor Education and Examination Regulations for more information. PREREQUISITES: Prior knowledge in microeconomics equivalent to the course Microeconomics (EBC1012) is essential. Recommended are also the courses Probability Theory (EBC1024), Analysis II (EBC1032), Optimisation (EBC2105), and Game Theory and Economics (EBC2110). Exchange and elective students should be aware of the advanced mathematical level of this course. |
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| Teaching methods (indicative; course manual is definitive) | PBL / Lecture / Assignment | ||||||||||||||||||||||||||||||||||||||||||||||||
| Assessment methods (indicative; course manual is definitive) | Written Exam / Presentation | ||||||||||||||||||||||||||||||||||||||||||||||||
| Evaluation in previous academic year | For the complete evaluation of this course please click "here" | ||||||||||||||||||||||||||||||||||||||||||||||||
| This course belongs to the following programmes / specialisations |
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