Winter 2025
Taught by
Régis Renault: regis.renault@cyu.fr
Office CYU, Chênes 1. A106.
Phone: +33134257228
Course outline
I. Risk and uncertainty
January 6-20 Chapter 1. Decision under uncertainty (ch 6): SLIDES
a criterion of choice under un-
certainty: expected utility theory (6B), risk aversion (6C), the difficult
comparison of payoff distribution (6D), subjective probability theory (6F).
January 21-February 3rd. Chapter 2. General equilibrium with uncertainty (ch 19, except 19 D-E-G-H): SLIDES
model (19B, contin- gent commodities), Arrow-Debreu Equilibrium (19C), welfare theorems, examples of incomplete markets (19F), market failures more generally.
II Game theory.
February 10-March 11 Chapter 3. Games, strategies and equilibrium. SLIDES
Games and strategies. – Nash equilibrium. – Perfect equilibrium.
March 17-March 25 Chapter 4. Games with imperfect information.
Bayesian equilibrium. – Perfect Beayesian Equilibrium.
Grading.
Final grade weigh equally the grade on the midterm and the grade on the final exam. Students will also be required to hand in homework assignments: they will not be graded but the instructor will provide personalized comments.
Homework assignments.
Problem Set 1. Due on January 26 2025.
Problem Set 2. One of these problems will be on the midterm of March the 4th.
Problem Set 3. Either problem 1 or problem 2 will be on the final exam. In any case, prepare all problems by April 7. They will be discussed in the review session..