## Lecture 1: Uncertainty 1

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, ris...

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, ris...

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.)

In this lecture we show assorted examples of solving problems of decisions under uncertainty, and introduce the welfare topic.

Below is the first problem set, on uncertainty.

In this half of the lecture we introduce social welfare functions and analyse their origins and their optima. We also look at the economics of voting.

In this half of the lecture we look at externalities and a few mechanisms to lessen their impact.

In this lecture we introduce public goods, describe the conditions for their optimal provision, and show how we may discover the strength of people’s prefere...

The second problem set, on welfare, externalities and public goods.

In this lecture we look at net present values, and choices across time.

In this lecture, we look at the problems caused by adverse selection, first in product markets, then in insurance markets, then in labour markets.

The third problem set, on the VCG mechanism, intertemporal choice and adverse selection.

In this lecture we examine the problems caused by moral hazard in insurance and health markets, and we also examine principal-agent problems.

In this problem set we look at the issues that arise from asymmetric information.

In this lecture we examine different types of auctions, considerations in optimal auction design, and some examples of real world auctions.

The final problem set of the semester, this time on auctions.