/
Français
English
No description
ECUE Théorie de la décision et finance comportementale
ECUE's code : IMETDUI
EUR ELMI
Sciences économiques
Campus Saint Jean d'Angély
Master 1
Semestre impair
Anglais
PRESENTATION
The objective of the lecture is to study choices under risk and uncertainty, and more specifically to present methods to elicit agents' preferences and beliefs from their choices. We take the standpoint of a financial adviser who must guide his/her clients' decisions, and who bases his/her judgment on the clients' preferences and beliefs from the clients' past choices.
The course will present different theories that are widely used to represent individual behaviours under risk and uncertainty: (i) expected value, (ii) expected utility, (iii) rank-dependent expected utility, and (iv) prospect theory. We will present the main theoretical foundations of each model, and then test their empirical plausibility by confronting them to actual choice data -- i.e. choices made by the students in the classroom and in the 'market game'.
The different models will be applied to various insurance and financial problems (during the class and with optional exercises).
A last objective of the lecture is to raise some methodological questions about the definition of a 'rational' choice in a situation of risk or uncertainty, and to emphasise that deviations from the theorerical models discussed throughout the lecture are not necessarily the symptom of some pathological, non-rational, cognitive 'biases' that hamper our rationality.
Course's manager(s)
Guilhem Lecouteux
In class
- 20h of lectures
PREREQUISITES
Before the start of the course, I must ...
-
Be familiar with standard microeconomic tools
-
Have basic notions in probability and statistics
OBJECTIVES
By the end of this course, I should be able to...
- Building utility function from choice data
- Eliciting preferences and beliefs from choice data
- Modelling attitudes towards risk and ambiguity
CONTENT
-
Introduction
-
Expected value
No description
-
Expected utility theory
No description
-
Rank-dependent utility model
No description
-
Prospect theory
No description
-
Market game
No description
Access to complete Syllabus (Authentification required)
Important
This syllabus has no contractual value. Its content is subject to change throughout this year: be aware to the last updates