In this first lecture, I introduce the course, then we go on to look at rational choice under uncertainty. We’ll discuss expected utility, risk aversion, risk premia, and some of the many “paradoxes” of people’s behaviour under uncertainty. There’ll be a chance to win some money too! Lecture 1 Uncertainty 1
Welcome to the course website. Here I’ll upload all of the slides, and all of the problem sets. (Answers to problem sets will be distributed in classes.) Topics to be covered include uncertainty, inter-temporal choice, welfare, externalities, public goods and the problems of asymmetric information. The course textbook is Varian’s Intermediate Microeconomics.
Below is the mock for the end of term test which will happen next week (week 10). As I said in the lecture, the final test will be identical except for different parameter values. It is supposed to go a bit beyond what we’ve covered in lectures, so don’t be scared if it seems confusing […]