The Economics of Uncertainty

This is an advanced microeconomic theory course. Using the concepts and mathematical techniques developed in ECO 310, the following topics are studied: [1] Theories of choice under uncertainty. [2] Risk aversion and applications to insurance and portfolio choice. [3] Equilibrium under uncertainty with applications to financial markets. [4] Asymmetric information: moral hazard and adverse selection. [5] Applications to the design of incentives and contracts.