Decn-Making in Econ Finc

3 Credits · Level: Graduate, Undergraduate

This course studies how do, and how should, individuals or groups make decisions in the presence of risk and uncertainty. We study the ways in which uncertainty can be expressed and represented. Key topics include standard models, such as expected utility; as well as deviations and commonly observed anomalies. Applications may include but are not limited to asset pricing and risk premia, insurance markets, ambiguity aversion, market for "lemons," group vs. idiosyncratic risk, etc.