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.
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.
Note: This course description was formerly published with a disclaimer regarding potential changes to teaching methods, mandatory requirements and assessment. The course description has now been updated, and this is the final version.
Professor Trond E. Olsen, Department of Business and Management Science