The Economics of Uncertainty and Asymmetric Information, 7.5 ECTS
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This course introduces the economic theory of uncertainty and asymmetric information. It discusses how incentives and optimal choices are affected by uncertainty, and the implications for the design of contracts. The focus is on various types of informational asymmetries and measures that can be undertaken to deal with these. Topics covered are the principal agent theory, moral hazard, adverse selection, signaling, screening and strategic interaction under uncertainty. Some of the practical applications examined are the analysis of measures to reduce exposure to risk, the supply and demand for insurance, the optimal risk distribution, market equilibrium under uncertainty and contract design.
Area of interests: Business and Economics
Business and Economics is important at all levels in society. Business Administration teaches you how companies and other organizations work and how they can achieve their goals in the best possible way. Do you want a long-term perspective and are you interested in what causes financial crises and why certain economies grow faster than others? Then Economic History is the subject for you. If you wish to study how decisions made by human beings affect society, then Political Economy is a wise choice.
Subject
Economics
Stockholm University offers one of the best environments in Europe for research and higher education in Economics. Former students are employed as economists in a wide range of fields, such as national and international organisations, government, business and finance. The Department of Economics at Stockholm University has 30 faculty members. Courses are also taught by researchers at the Instutite for International Economic Studies, IIES, and the Swedish Institute for Social Research, SOFI.
The Department of Economics is a member of the Socrates/Erasmus Exchange Program, and takes part in Stockholm University’s NORDPLUS and central exchange agreements. For information see: Exchange studies.
The Department of Economics offers a two-year Master Programme in Economics as well as a Research Master Programme in Economics, both taught in English. Application is in January/February and courses start in late August or early September. For information see: Master programmes.
Doctoral studies in Economics at Stockholm University is organized by the Department of Economics in cooperation with IIES and SOFI. Stockholm University and the Stockholm School of Economics offer joint courses for PhD students in economics, economic statistics and finance within the Stockholm Doctoral Course Programme in Economics, Econometrics and Finance, SDPE. For information see: PhD programme.