Decisions, Strategy and Information

ECO400 Decisions, Strategy and Information

Autumn 2021

  • Topics

     The course consists of three parts:

    1. Deciscions under uncertainty
    2. Analysis of strategic interaction (game theory)
    3. 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.

  • Learning outcome

    Knowledge

    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.

    Skills

    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

    General competence

    Upon completion of the course, students will:

    • be able to apply these methods to relevant economic problems

  • Teaching

    The course logistics will have to be adapted to the Covid 19 pandemic situation in the fall. If the situation permits it, we will have physical lectures with classroom participation that will also be recorded and made available online. If physical lectures are not feasible, lectures will be held online.

  • Recommended prerequisites

    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

    Two individual assignments.

  • Assessment

    Individual digital 4 hours home exam. The exam must be written in English.

  • Grading Scale

    A - F

  • Computer tools

    None.

  • Literature

    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 

Overview

ECTS Credits
7.5
Teaching language
English.
Semester

Autumn. Offered Autumn 2021.

Course responsible

Associate Professor Morten Sæthre, Department of Economics (main course responsible)

Assistant Professor Mohammed Mardan, Department of Business and Management Science