TrainingsDE 2ème/3ème cycleDESU Magistère Ingénieur EconomisteCoursesEconomics of uncertainty

DESU Magistère Ingénieur EconomisteUE Economics of uncertainty

Content

The objective of this course is to present to the students an introduction to the methods of economic analysis under uncertainty.

Course overview :

  1. Models of Uncertainty
  2. Decision Criteria
  3. Risk trading and sharing, and insurance
  4. Financial Decisions

Professional skills

The course will present the modern theoretical methods in decisions under uncertainty by supporting them with rigorous proofs. These techniques will be illustrated by empirical examples from the economic literature.

The first searched skill is the understanding of the basic results of economics under uncertainty and of the hypotheses that support them.

Language used

Main language used by this course: Anglais et Français.

Bibliography

The content of the given classes will be enough for taking the exam. However, the following references may be useful to the students who wish to specialize in this field.

  • Drèze, J., « Essays on Economic Decisions under Uncertainty, » Cambridge University Press, 1990.
  • Eeckhoudt, L. “Economic and Financial Decisions under Risk,” Princeton University Press, 2005.
  • Geweke, J. (Ed.), “Decision Making under Risk and Uncertainty,” Kluwer Academic Publishers, 1992.
  • Gilboa, I. “Theory of Decision under Uncertainty,” Cambridge University Press, 2009.
  • Henriet, D. and J.-C. Rochet, “Microéconomie de l’Assurance,” Economica, 1991.
  • Laffont, J.-J., « Cours de Théorie Microéconomique. Volume II : Economie de l’Incertain et de l’Information », Economica, 1991.

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Recommended prerequisites

Linear econometrics, optimization, matrix algebra, Consumer economics, probability theory.

Structure and organisation

Traditional lecture organization.

One final written test.

THE TRAININGS WHICH USE THIS COURSE