Economics of Uncertainty and Asymmetric Information

What it is about

You learn how to analyze economic decisions under uncertainty and asymmetric information. By the end you will be able to apply expected utility-based models, identify market failures due to information asymmetries, and assess measures to solve incentive and information problems (e.g., in insurance markets or in the principal-agent context).

What you will be able to do

• Application of microeconomic methods under uncertainty
• Use of expected utility theory to model decisions
• Recognizing and evaluating market failures due to asymmetric information
• Solving problems of incentive compatibility

What the module consists of

• LecturesTransmission of theoretical content through lectures
• TutorialApplication and deepening by independently solving tasks

Teaching method

• Lecture/Presentationto convey the lecture content in a structured way
• Exercise tasks and discussionto foster independent thinking and practice the application of the models