Mathematical Economics I - Period 1+2

Society asks for evidence-driven economic theories that are ready for use in economic decision making situations. This requires on the one hand descriptive theory that explains and predicts economic reality, and on the other hand normative theory that guides the decision maker what economic intervention should ideally be done. The rise of Behavioral Economics and the financial crisis of 2007 made clear that classical economic models were not up to this task. Since then, (mathematical) economics is in transition, which is reflected in this course. It also requires more academic reflection from participants than they are used in other EOR courses.

This course deals with modeling individuals, companies, governments, NGOs that take economic decisions in an economic context, e.g. Apple deciding its pricing strategy taking into account its competitors. The interaction of decision makers and their economic surrounding is at the heart of this course. We distinguish three major topics: individual decision making, collective decision making (f.e. how do groups or societies reach decisions) and strategic decision making (f.e. how to bid in an auction anticipating others' bids).

Contact hours listed under a course description may vary due to the combination of lecture-based and independent work required for each course therefore, CEA's recommended credits are based on the ECTS credits assigned by VU Amsterdam. 1 ECTS equals 28 contact hours assigned by VU Amsterdam.