Economics of Risk credit: 3 or

4 Hours

Exploration of economic decisions under uncertainty. Includes expected utility theory and non-expected utility theory; applications to individual decision problems in investment and insurance; general equilibrium in markets under uncertainty, including problems generated by asymmetric information; measurement of risk; the value of information obtained before a decision. 3 undergraduate hours. 4 graduate hours. Prerequisite: ECON 202 ; ECON 302 ; and one of: MATH 220 or MATH 221 are required.