First cycle
degree courses
Second cycle
degree courses
Single cycle
degree courses
School of Economics and Political Science
ECONOMICS
Course unit
ECONOMICS OF INFORMATION AND UNCERTAINTY
EPP4064796, A.A. 2017/18

Information concerning the students who enrolled in A.Y. 2015/16

Information on the course unit
Degree course First cycle degree in
ECONOMICS
EP2093, Degree course structure A.Y. 2014/15, A.Y. 2017/18
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Number of ECTS credits allocated 6.0
Type of assessment Mark
Course unit English denomination ECONOMICS OF INFORMATION AND UNCERTAINTY
Department of reference Department of Economics and Management
Mandatory attendance No
Language of instruction English
Branch PADOVA

Lecturers
Teacher in charge Teacher in charge not defined yet.
Other lecturers OTTORINO CHILLEMI SECS-P/01

ECTS: details
Type Scientific-Disciplinary Sector Credits allocated
Educational activities in elective or integrative disciplines SECS-P/01 Political Economy 6.0

Mode of delivery (when and how)
Period Second trimester
Year 3rd Year
Teaching method frontal

Organisation of didactics
Type of hours Credits Hours of
teaching
Hours of
Individual study
Shifts
Lecture 6.0 42 108.0 No turn

Calendar
Start of activities 08/01/2018
End of activities 09/03/2018

Syllabus
Prerequisites: Micoreconomics.
Target skills and knowledge: This course introduces students to uncertainty and information economics.
Uncertainty refers to any situation in which some information relevant to the decision maker is missing; economics of uncertainty provides the analytical tools that have been developed to deal with these situations.
Economics of information studies situations in which, not only some relevant information is missing, but the available information is distributed asymmetrically across the agents. It shows how this may lead to market failures and how proper contracts can be designated to alleviate these problems.
The course provides some basic tools and general concepts that will be appplied to several contexts, ranging from insurance to the internal organization of the firm and to labor contracts.
Examination methods: Final written exam.
Assessment criteria: Students will be evaluated on the basis of their capacity of using the language and the tools provided to model economic problems and their capacity of solving the model.
Course unit contents: UNCERTAINTY
- Expected Utility Theory: assumptions, the independence axiom.
- Risk propensity.
- Risk sharing.
- Applications: insurance and portfolio choices.
- Non-Expected Utility Theories (hints).

ECONOMICS OF INFORMATION
- The principal-agent problem.
- Examples.
- Moral hazard. Incentive contracts.
- Adverse selection. Screening and signaling.
Planned learning activities and teaching methods: Standard lectures and some practice sessions.
Additional notes about suggested reading: No required textbook for this course. Students can refer to any of the numerous available textbooks in Microeconomics and in Contract Theory. Slides will be provided prior to each class.
Textbooks (and optional supplementary readings)