Knowledge of the main issues in the microeconomic theory of uncertainty and information; skills in analyzing these issues in economic models.

PLEASE NOTE THAT THE INFORMATION ABOUT THE TEACHING AND ASSESSMENT METHOD(S) USED IN THIS COURSE IS WITH RESERVATION. THE INFORMATION PROVIDED HERE IS BASED ON THE COURSE SETUP PRIOR TO THE CORONAVIRUS CRISIS. AS A CONSEQUENCE OF THE CRISIS, COURSE COORDINATORS MAY BE FORCED TO CHANGE THE TEACHING AND ASSESSMENT METHODS USED. THE MOST UP-TO-DATE INFORMATION ABOUT THE TEACHING/ASSESSMENT METHOD(S) WILL BE AVAILABLE IN THE COURSE SYLLABUS. The course gives an introduction to the microeconomic theory of uncertainty and information, which studies how uncertainty and information (e.g., about the quality of a good) affect decisions, interaction, and economic outcomes. We cover the main issues of the field, for example adverse selection and moral hazard. As applications, we study among others the decision of whether or not to take out insurance, the inference of information from market prices, and the optimal design of job contracts.

Reader and literature will be announced on Canvas .

The level of this course is relatively high and preferably third year students should register. Knowledge and understanding of microeconomics [level comparable to "Microeconomics" ] and quantitative methods [level comparable to "Quantitative Methods III" ] is required. Exchange students need to follow a Bachelor in economics. Exchange students should have a good background in microeconomics to benefit optimally from the course.
an advanced level of English