Competencies and objectives


Course context for academic year 2023-24

The traditional theory economists and decision analysts use to evaluate decisions under uncertainty is subjective expected utility (SEU). Many real-world applications are based on SEU. However, since Kahneman and Tversky’s (1979) prospect theory paper (the most quoted paper in economics today even though it is written by two psychologists) we know that people deviate in systematic manners from SEU. Recent years have seen a wealth of new developments in decision under uncertainty. People have started modeling and measuring important deviations from SEU like probability weighting and loss aversion. Others have challenged the importance of these concepts. Another development is the focus on measuring higher order risk and ambiguity preferences like prudence and temperance. This course will give an overview of the new developments in decision under uncertainty. It treats both theories and methods to measure these theories. The course will also discuss applications, particularly in the area of medical decision making.



Course content (verified by ANECA in official undergraduate and Master’s degrees)

General Competences (CG)

  • CG1 : Capacity to carry out research work.
  • CG3 : Capacity to apply economic theory to represent real situations.
  • CG4 : Capacity for teamwork.
  • CG5 : Capacity for self-learning.
  • CG6 : Ethical commitment and social responsibility at work, respecting the environment, being aware and understanding the importance of respect for fundamental rights, equal opportunities for men and women, universal accessibility for the disabled and respect for the values of a peaceful, democratic society.
  • CG7 : Analyse problems using critical reasoning, without prejudice and with precision and rigor.
  • CG8 : Capacity for synthesis.


Specific Competences (CE)

  • CE1 : Capacity to read Economic research articles in a reasoned fashion and evaluate them critically, understand their essential contributions and weaknesses.
  • CE2 : Capacity to understand how the technical problems faced by authors of research articles have been resolved in each case.
  • CE3 : Capacity to test theorems and propositions.
  • CE5 : Capacity to present important economic problems precisely and respond adequately to said problems by using the techniques learnt on the different courses, using theoretical and empirical analyses or simulations if necessary.
  • CE6 : Ability to write a research report or article describing the problem dealt with, analysing previous literature on the subject, clearly presenting the solution obtained for the problem and synthesising the conclusions of the work.




Learning outcomes (Training objectives)

No data



Specific objectives stated by the academic staff for academic year 2023-24

An important aim of the course is to teach student show to set up their own experiments. An assignment to develop such an experiment will be part of the course. In addition, we will read several paper sin class and discuss these.





Code: 41214
Lecturer responsible:
Credits ECTS: 5,00
Theoretical credits: 1,20
Practical credits: 0,40
Distance-base hours: 3,40

Departments involved

    Theoretical credits: 1,2
    Practical credits: 0,4
    This Dept. is responsible for the course.
    This Dept. is responsible for the final mark record.

Study programmes where this course is taught