Module Handbook

  • Dynamischer Default-Fachbereich geändert auf WIW

Course WIW-FE-CUC-K-7

Choice under Uncertainty (3V, 4.5 LP)

Course Type

SWS Type Course Form CP (Effort) Presence-Time / Self-Study
3 V Lecture 4.5 CP 45 h 90 h
(3V) 4.5 CP 45 h 90 h

Basedata

SWS 3V
CP, Effort 4.5 CP = 135 h
Position of the semester 1 Sem. in WiSe
Level [7] Master (Advanced)
Language [EN] English
Lecturers
Area of study [WIW-FE] Macroeconomics
Additional informations
Livecycle-State [NORM] Active

Contents

The aim of this module is to develop a theoretical understanding of choice behavior under uncertainty. Models on how agents make decisions in situations with uncertainty are discussed. We first discuss classical expected utility theory, then recent approaches to the choice behavior of decision makers.

Topics:

  • Preferences over lotteries
  • Expected Utility theory
  • Allais Paradox, Ellsberg Paradox, Machina Paradox
  • Risk Aversion
  • Risk Management
  • Consumption and savings
  • Elements of prospect theory

Literature

Lecture Notes

Requirements for attendance (informal)

None

Requirements for attendance (formal)

None

References to Course [WIW-FE-CUC-K-7]

Module Name Context
[WIW-FE-CUC-M-7] Choice under Uncertainty P: Obligatory 3V, 4.5 LP