ECO400 Decisions, Strategy and Information
The course consists of 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 will have:
- solid knowledge of theories and principles for analysis of decision making under uncertainty and under strategic interaction.
Upon completion of the course, students will be able to:
- apply economic analysis to understand decision making under uncertainty and strategic interaction
- apply game theoretic methods to understand behavior and outcomes in situations where agents have different objectives, action possibilities and information
Upon completion of the course, students will:
- be able to apply these methods to relevant economic problems
The course logistics will have to be adapted to the Covid 19 pandemic situation in the fall. As of now (June) the plan is to have most classes taught in the classroom. These classes will be videotaped and made available to all students in the course. The remaining classes (depending on the Covid situation) will be organized as digital classes.
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
4 hours written school exam if permitted by the Covid 19 situation. The exam must be written in English. For students who, due to the pandemic cannot be present at the school, a course exam can be taken digitally from home.
UPDATED 10 November 2020:
The school exam planned in ECO400 has been converted to a home exam due to recently updated municipal Covid-19 regulations, ordering that all exams be conducted digitally.
As previously stated, this home exam will be conducted at the same time, and with the same exam questions that were planned for the school exam. The grading scale remains unchanged.
UPDATED 12 October 2020:
In the autumn of 2020, the school exam will primarily not be changed. The primary form of assessment is a 4-hour school exam with an A-F grading scale.
1. If the Corona situation makes a school exam impracticable, the exam may on short notice be converted to a home exam. If this happens, the home exam will be conducted with the same exam questions that were planned for the school exam.
2. If needed, an extraordinary retake exam will be planned in the start of January. This exam will be open for students who are registered for assessment in this course, but are unable to take part in physical assessment due to quarantine restrictions because of close contact to someone infected by the Corona virus. These retake exams will have the same format as the ordinary exam. To be registered for this exam you will have to apply for it with a medical certificate or other forms of official documentation that you are quarantined. The quarantine period (10 day interval) must be clearly stated with a start and end date.
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 2020.
UPDATED 12 October 2020: The assessment form was revised due to the ongoing corona pandemic. See assessment section for details.
Professor Trond E. Olsen, Department of Business and Management Science