Decisions, Strategy and Information

ECO400 Decisions, Strategy and Information

Spring 2024

Autumn 2024
  • Topics

    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


    Upon completion of the course, students will:

    • be able to describe and explain theories and principles for analysis of decision making under uncertainty and under strategic interaction
    • be able to discuss the limitations and criticism of the theories taught in this course.


    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 features interactive sessions and lectures with classroom participation at least once per week. Online videos and exercises covers most of the curriculum, while the on-campus sessions will feature Q&A, discussions, experiments and exercises.

  • 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. The models that are used are relatively simple, and no special prerequisites are required, though we will make use of basic calculus.

  • Compulsory Activity

    Two individual assignments. The assignments have to be taken in the same semester the exam is written.

  • Assessment

    Individual 4 hours written school exam. The exam must be written in English.

  • Grading Scale

    A - F

  • Computer tools


  • 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 

  • Permitted Support Material

    All written support material permitted (category III) 


    One bilingual dictionary (category I) 

    All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material and  


ECTS Credits
Teaching language

Autumn. Offered autumn 2023.

Course responsible

Associate Professor Justin Valasek, Department of Economics (main course responsible)

Associate Professor Mohammed Mardan, Department of Business and Management Science