Dynamischer Default-Fachbereich geändert auf WIW

Module WIW-FE-CUC-M-7

Choice under Uncertainty (M, 4.5 LP)

Module Identification

Module Number	Module Name	CP (Effort)
WIW-FE-CUC-M-7	Choice under Uncertainty	4.5 CP (135 h)

Basedata

CP, Effort	4.5 CP = 135 h
Position of the semester	1 Sem. in WiSe
Level	[7] Master (Advanced)
Language	[EN] English
Module Manager	Wenzelburger, Jan, Prof. Dr. (PROF \| DEPT: WIW)
Lecturers	Wenzelburger, Jan, Prof. Dr. (PROF \| DEPT: WIW)
Area of study	[WIW-FE] Macroeconomics
Reference course of study	[WIW-88.21-SG#2009] M.Sc. Business Studies (2009) [2009]
Livecycle-State	[NORM] Active

Courses

Type/SWS	Course Number	Title	Choice in Module-Part	Presence-Time / Self-Study		SL	SL is required for exa.	PL	CP	Sem.
3V	WIW-FE-CUC-K-7	Choice under Uncertainty	P	45 h	90 h	-	-	PL1	4.5	WiSe

About [WIW-FE-CUC-K-7]: Title: "Choice under Uncertainty"; Presence-Time: 45 h; Self-Study: 90 h

Examination achievement PL1

Form of examination: oral examination (15-30 Min.)
Examination Frequency: each semester

Evaluation of grades

The grade of the module examination is also the module grade.

From [WIW-FE-CUC-K-7] Choice under Uncertainty:

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

Competencies / intended learning achievements

Explain the concept of uncertainty
Compare payoff distributions
Measure the value of information
Understand static portfolio decisions and precautionary savings
Explain the preference reversal phenomenon
Discuss and evaluate empirical findings

Literature

Lecture Notes

Requirements for attendance of the module (informal)

None

Requirements for attendance of the module (formal)