This is a strongly theoretical and mathematical economics module. The focus of attention is on how individuals make choices under uncertainty and asymmetric information. The first part of the module focuses mainly on two models: Expected Utility Theory and Prospect Theory. These are followed by discussions on major concepts and models of the Theory of Choice under Uncertainty and the Economics of Information with detailed micro-level analysis. Relevant applications are also discussed, such as individual Portfolio Theory and the Principal-Agent problem.
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