Courses NonDegree Display 2024-2025

Course Description To PDF
Course title Economics of Uncertainty and Information
Course code EBC2108
ECTS credits 6,5
Assessment Whole/Half Grades
Period
Period Start End Mon Tue Wed Thu Fri
5 14-4-2025 8-6-2025 L X X
Level Advanced
Coordinator Arkadi Predtetchinski
For more information: a.predtetchinski@maastrichtuniversity.nl
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.
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.
Literature
Bikhchandani, S., J. Hirshleifer, and J.G. Riley (2013), The Analytics of Uncertainty and Information, 2nd edition, Cambridge University Press, Cambridge.
Prerequisites
This course has been cancelled for the:
* pre-master Economics
* pre-master Human Decision Science
See the Bachelor Education and Examination Regulations for more information.

The following rule applies to pre-master students who started the programme prior to academic year 2023-2024.
Specifically:
* Pre-master Economics
* Pre-master Human Decision Science
TRANSITIONAL REGULATION (EBC2108):
Students who have not been able to successfully complete "Economics of Uncertainty and Information" (EBC2108) before 2024-2025, do not comply with the requirement to successfully complete the pre-master in two academic years. Therefore, no additional examination options will be available.


This course is in transition for the bachelor Fiscal Economics.
See the Bachelor Education and Examination Regulations for more information.

The following rule applies to bachelor Fiscal Economics students.
TRANSITIONAL REGULATION (EBC2108):
The bachelor Fiscal Economics has been discontinued.

There will be repeat education for year 1 and year 2 courses up to and including academic year 2025-2026 and exam-only up to and including academic year 2026-2027. For year 3 courses there will be repeat education up to and including 2026-2027 and exam-only up to and including academic year 2027-2028.

Whether a course is in transition, cancelled, or replaced may depend on the cohort you are in. Sometimes there are additional criteria. It is therefore very important to carefully read the EER and any addendum so you can apply the rules to your individual situation.


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.
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
Bachelor Economics and Business Economics - Economics Year 3 Quantitative Economics Elective(s)
Bachelor Economics and Business Economics - Emerging Markets Year 3 Elective Course(s)
Bachelor Economics and Business Economics - Economics and Management of Information Year 2+3 Quantitative Economics Elective(s)
Bachelor Economics and Business Economics - International Business Economics Year 3 QE Elec(s) - Maj Accounting
Bachelor Economics and Business Economics - International Business Economics Year 3 QE Elec(s) - Maj Finance
Bachelor Economics and Business Economics - International Business Economics Year 3 QE Elec(s) - Maj Inf Mgmt
Bachelor Economics and Business Economics - International Business Economics Year 3 QE Elec(s) - Maj Marketing
Bachelor Economics and Business Economics - International Business Economics Year 3 QE Elec(s) - Maj Org
Bachelor Economics and Business Economics - International Business Economics Year 3 QE Elec(s) - Maj SCM
Bachelor Economics and Business Economics - International Business Economics Year 3 QE Elec(s) - Maj Strategy
Bachelor Econometrics and Operations Research Year 2 Compulsory Course(s)
Bachelor Fiscal Economics Transitional Regulation
Bachelor International Business - Emerging Markets Year 3 Elective Course(s)
Bachelor International Business Year 3 QE Elec(s) - Maj Accounting
Bachelor International Business Year 3 QE Elec(s) - Maj Finance
Bachelor International Business Year 3 QE Elec(s) - Maj Inf Mgmt
Bachelor International Business Year 3 QE Elec(s) - Maj Marketing
Bachelor International Business Year 3 QE Elec(s) - Maj Org
Bachelor International Business Year 3 QE Elec(s) - Maj SCM
Bachelor International Business Year 3 QE Elec(s) - Maj Strategy
Pre-master Econometrics and Operational Research Compulsory Course(s)
Pre-master Economics Deprecated
Pre-master Human Decision Science Deprecated
SBE Exchange Bachelor Bachelor Exchange Courses
SBE Exchange Master Bachelor Exchange Courses
SBE Non Degree Courses Bachelor Courses