Economics of Uncertainty and Information
3.0
creditsAverage Course Rating
In this course we'll discuss the theory of decision making in the face of risk, the theory of risk aversion and its applications to financial and insurance markets. Building on the theory of individual decision making under risk, we will study the economic implications of asymmetric information, the type of market failures produced by adverse selection and moral hazard problems, and the models that were advanced to analyze these problems, including incentive contracts, screening and signaling equilibria.
Spring 2015
Professor: Edi Karni
The best aspects of this class were the application of mathematical concepts and the opportunity to collaborate on assignments. The professor had a clear understanding of the material and was able to make class interesting and engaging. Some students found the course to be more advanced than a 300 level course. This course could be improved by incorporating a TA section, and increasing the number of credit hours assigned or listing it as a graduate level course. Prospective students should be proficient in MATLAB and have a strong background in calculus, differential equations, and stochastic.