ACE 501
Risk and Info: Theory and App

Credit: 4 hours.


(ACE 462) Applications of the theory of economic behavior under uncertainty and asymmetric information. Analysis of individual decision making under uncertainty includes: tests of the expected utility hypothesis; comparative statistics of changes in risk preferences and risk; and moment based models of decision making. Analysis of economic equilibrium under uncertainty and asymmetric information includes tests for complete markets and applications of noncooperative game theory. Prerequisite: ECON 502 and ECON 506 or STAT 400.