The objective of this course is to develop the basic microeconomic models for risk and insurance with setting that economic agents are faced with uncertainty. The main topics include decision making under uncertainty, insurance demand, adverse selection, moral hazard, and insurance company operations. The models and cases discussed in this course are adaptable to many situations in finance and economics, but with an emphasis on insurance markets as means of transferring risk and wealth.

G. Rejda,Principles of Risk Management and Insurance, 12th ed., 2014. (GR)