This course aims to introduce students to economic models of decision making under uncertainty. We will begin with an introduction to utility theory, and then develop the expected utility hypothesis. We will review some of the classical criticisms of the expected utility hypothesis, and review of the recent alternative models that have been popularized in the behavioral economics literature. We will devote the remainder of the term to a range of market applications of expected utility theory, with special attention paid to insurance markets and asset markets.

For textbook information, please visit the ECON Textbook Information Website. Information will be posted for each class as soon as it is available.