Academic year
2021/2022 Syllabus of previous years
Official course title
Course code
EM1402 (AF:358737 AR:188038)
On campus classes
ECTS credits
Degree level
Master's Degree Programme (DM270)
Educational sector code
3rd Term
Course year
Go to Moodle page
This is a core course that completes the advanced study of economics within the DABS Master by providing knowledge and competences to deal with complex issues of choices under uncertainty and risky environment as developed in Economics. It has two parts: the first part provides a graduate-level introduction to approaches to risk and the role of strategic interaction. The second part deals with the relevant knowledge behaviour of agents, household finance and the role of information for individuals and firms, by providing examples in several domains that make use of big data.
a. Knowledge and understanding:
a.1) Ability to understand models of decision under uncertainty and markets
a.2) Ability to discern different approaches to risk with big data
a.3) Ability to conceptualise and apply strategic choices of economic agents.
a.4) Ability to understand formal models of information and the impact
a.5) Ability to conceptualise the role of information in economics

b) Applying knowledge and understanding:
b.1) Ability to become familiar with different kinds of models of economies under risk.
b.2) Ability to apply models for strategic interactions.
b.3) Ability to apply and find solutions under uncertainty.
b.4) Ability to apply and find solutions with asymmetric information

c) Making judgements
c.1) Ability to judge and discuss trade-offs in markets with risk.
c.2) Ability to judge and discuss trade-offs in strategic choices.
c.3) Ability to judge and discuss trade-offs in the context of markets affected by asymmetric information.

d) Lifelong learning skills
d.1) Master complex problems with risk.
d.2) Master assumptions of economic problems with big data
d.3) Ability to make use of new tools and adapt competences.

This course places the emphasis on economic issues which deal with risk and information. There are no formal prerequisites, but successful completion of standard undergraduate course in microeconomics and basic knowledge of optimisation and probability is highly recommended.
Decision making under uncertainty.
The expected utility model, risk aversion, risk premium, the structure and value of information.
How to insure against risks.
The role of information in economics: using big data.
Markets with symmetric information and asymmetric information. Adverse selection and moral hazard.
Elements of Household finance
The course is based on case studies: a presentation of the lectures will be provided on slides at the dedicated moodle platform, however elements of the course content are also in:

Giacomo Bonanno, The Economics of Uncertainty and Insurance, University of California, Davis, ISBN: 9781796685015,
Hugh Gravelle, Ray Rees, Microeconomics, 3rd Edition2004, Financial Times Press, Chapters: 17-20
Grading is based on the work done during the years (homeworks and study groups) and on a final written exam.

The course is strongly based on practical experience and case studies, flipped classes. Lectures will support the organization of the material
Grading is based on the work done during the years (homeworks and study groups) and on a final written exam

This subject deals with topics related to the macro-area "Human capital, health, education" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development

Definitive programme.
Last update of the programme: 20/07/2021