Decisions, Strategy and Information

ECO400 Decisions, Strategy and Information

  • Topics

    Topics

     The course has three parts:

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

     

     

  • Learning outcome

    Learning outcome

    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 students should

    • be able to apply economic analysis to understand decision making under uncertainty and strategic interaction
    • have insight in and be able to apply game theoretic methods to understand behavior and outcomes in situations where agents have different objectives, action possibilities and information
    • be able to apply these methods to relevant economic problems

  • Teaching

    Teaching

     

  • Required prerequisites

    Required 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

    Requirements for course approval

    Two assignments

  • Assessment

    Assessment

    Written school exam 4 hours

  • Grading Scale

    Grading Scale

    Grading scale A - F.

  • Computer tools

    Computer tools

    None.

  • Semester

    Semester

    Autumn

  • Literature

    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

Course responsible

Chang-Koo, Department of Economics og Eirik G. Kristiansen, Department of Business and Management Science