ECO400 Decisions, Strategy and Information
The course has three parts:
- Deciscions under uncertainty
- Analysis of strategic interaction (game theory)
- Economics of information
The course introduces students to analysis of decision making under uncertainty and under strategic interaction. Students will become familiar with analytical tools that are used in advanced courses in financial economics and in other specializations such as industrial economics and economics of organizations. The first part of the course focuses on decision making under uncertainty and agents' risk aversion. Thereafter students are introduced to game theory and information economics
Upon completion of the course students should have:
- a solid knowledge of theories and principles for analysis of decision making under uncertainty and under strategic interaction.
- ability to apply economic analysis to understand decision making under uncertainty and strategic interaction
- ability to apply game theoretic methods to understand behavior and outcomes in situations where agents have different objectives, action possibilities and information
- ability to apply these methods to relevant economic problems
The course applies analytic models to study decision making, strategic interaction and use of information, and is thus best suited for students who are comfortable with this kind of approach. But the models that are used are relatively simple, and no special prerequisites are required.
Requirements for course approval
Written school exam 4 hours
Grading scale A - F.
Mas-Colell, Whinston og Green: Microeconomic theory, Oxford University Press 1995, ch. 6.
Hirschleifer and Riley: The analytics of uncertainty and information, Cambridge University Press 1992, ch 5.1-5.2.2.
R. Gibbons: A primer in game theory, Harvester Wheatsheaf, 1992.
Bolton, P. and M. Dewatripont (2005): Contract theory, MIT press. Chs 1.1-1.3, 2.1-2.2, 4.1,4.4
- ECTS Credits
- Teaching language
Autumn. Offered Autumn 2018.
Assistant professor Chang-Koo, Department of Economics and professor Trond E. Olsen, Department of Business and Management Science