Microeconomics of Uncertainty
A.Y. 2025/2026
Learning objectives
The course provides students with the basic tools for the analysis of strategic behavior in economic and social settings.
The focus will be on the microeconomic fundamentals of individual choice under uncertainty and under strategic interaction with other individuals, taken both as separate and as combined issues.
The course will combine mathematical rigor and economic intuition to address fascinating questions about the behavior of economic agents.
The focus will be on the microeconomic fundamentals of individual choice under uncertainty and under strategic interaction with other individuals, taken both as separate and as combined issues.
The course will combine mathematical rigor and economic intuition to address fascinating questions about the behavior of economic agents.
Expected learning outcomes
By the end of the course students will learn how to analyze in a rigorous way the behavior of individuals under conditions of uncertainty and in contexts of strategic interaction.
Students will be able to model and analyze situations of economic and social interaction using the tools of game theory, discuss and predict the strategic behavior of agents in complex environments, and critically comprehend existing economic models.
Students will be able to model and analyze situations of economic and social interaction using the tools of game theory, discuss and predict the strategic behavior of agents in complex environments, and critically comprehend existing economic models.
Lesson period: First trimester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
First trimester
Course syllabus
Uncertainty: lotteries, expected utility theory, risk aversion.
Game Theory
· Normal form games: Nash equilibrium, dominance, applications.
· Extensive form games: backward induction, subgame perfection, beliefs-based solution concepts, repeated games, applications.
Asymmetric information: adverse selection and moral hazard.
Game Theory
· Normal form games: Nash equilibrium, dominance, applications.
· Extensive form games: backward induction, subgame perfection, beliefs-based solution concepts, repeated games, applications.
Asymmetric information: adverse selection and moral hazard.
Prerequisites for admission
Before taking the Microeconomics of Uncertainty course, students are invited to take the Microeconomics course.
Students should be familiar with rigorous and logical reasoning.
Students should be familiar with rigorous and logical reasoning.
Teaching methods
Frontal lectures and practical classes that show how to concretely use the theory.
Attendance is highly recommended.
Attendance is highly recommended.
Teaching Resources
H. Varian, Intermediate Microeconomics: A modern approach, W.W. Norton & Company.
M.J. Osborne, An Introduction to Game Theory, Oxford University Press.
M.J. Osborne, An Introduction to Game Theory, Oxford University Press.
Assessment methods and Criteria
The final assessment is based on a written exam at the end of the course, which will focus on the material presented and discussed in class.
In the grading process, more value will be given to reasoning rather than to exact calculation.
Students can gain extra points through active participation during the lectures.
In the grading process, more value will be given to reasoning rather than to exact calculation.
Students can gain extra points through active participation during the lectures.
Professor(s)
Reception:
Wednesday 9:00-12:00 or by appointment (please confirm via email)
MS Teams