|Module Title||UNCERTAINTY AND ASYMMETRIC INFORMATION|
|Co-ordinator||Ms Susan Charles|
|Course delivery||Lecture||12 Hours|
|Seminars / Tutorials||4 Hours|
This module extends the microeconomic analysis of choice covered in EC30230 to consider choice under conditions of uncertainty. Specifically, we consider choice in situations where the consequences of each option are unknown at the time of choice because they depend on future events. Having developed our basic model we then turn to consider the closely-related issue of asymmetric information, exploring how asymmetric information can lead to 'market failure' problems of adverse selection and moral hazard.
By the end of the module students should have an understanding of:
The current year's module outline can be found via The School's website
M L Katz and H R Rosen. Microeconomics.
W Nicholson. Microeconomic Theory.
H Varian. Intermediate Microeconomics.
L S Friedman. Microeconomic Policy Analysis.
J Hirshleifer and J G Riley. The Analytics of Uncertainty and Information.
B Hillier. (1997) The Economics of Asymmetric Information. Macmillan ISBN 0312 16396 7