Date 
Topics 
04.10.2018

cancelled because of faculty meeting

11.10.2018

Topics:
 Introduction
 Expected Utility Theory (until slide II.16 (p.8))
 Introductory examples, Bernoulli principle
 Lotteries and their graphical representation

18.10.2018

Exercise:
Illustrate B_{3} in situation 2 on slide I.5 (p.2) as compound lottery and formulate the corresponding simple lottery.
Topics:
 Expected Utility Theory (until slide II.25 (p.11))
 Axioms underlying Expected Utility Theory
 Expected Utility Theorem

25.10.2018

Topics:
 Expected Utility Theory (until slide II.39 (p.15))
 Expected Utility Theorem (cont)
 Geometric representation in the state space
 Demand for insurance
Please mind "Errata and amendments to the notes of September 2018" in Moodle

01.11.2018

All Saints' Day

08.11.2018

Topics:
 Demand for insurance: Example
 Risk aversion
 definition and characterization
 certainty equivalent and risk premium
 measuring risk aversion (absolute risk aversion)
(until slide III.13 (p.22))
Link: Taylor series (see also "Additional Notes" in Moodle)

15.11.2018

Topics:
 Risk aversion (until slide III.34 (p.29))
 measuring risk aversion (relative risk aversion)
 some commonly used utility functions

22.11.2018

Topics:
 Risk aversion: Example
 First order stochastic dominance (until slide IV.15)

29.11.2018
16:45  18:15
HS 9

Topics:
 Increases in risk (until slide IV.35):
 Mean preserving spread
 Second order stochastic dominance

06.12.2018

Topics:
 Increases in risk
 Second order stochastic dominance and risk preferences
 Characterizations
 Meanvariance approach (until slide V.12)
 Distribution of returns (see additional slides in Moodle)

13.12.2018

Topics:
 Meanvariance approach
 Distribution of returns
 Problems and limitation of the meanvariance approach
 Role of information in decisionmaking under risk (until slide VIII.12)

20.12.2018

Christmas holidays

27.12.2018

Christmas holidays

03.01.2019

Christmas holidays

10.01.2019

Topics:
 Role of information in decisionmaking under risk (until slide VIII.29)
 Empirical facts (until slide VI.14)

17.01.2019

Topics:
 Empirical facts
 Prospect Theory: 4 ideas (until slide VII.38)

24.01.2019

Topics:
 Prospect Theory and Cumulative Prospect Theory


Do not forget to register for the exam!
Registration for the lecture does not include registration for the exam.
Check after registration that your status is "vorgemerkt" / "Pregistered".
The final registration is made after the end of the registration period.
Students registered for a master program of another faculty please contact me if you are not registered after the end of the registration period
such that we can register you for the exam.
Bachelor students are not allowed to take the exam.
Students not being registered are not allowed to take the exam.

Thu, 31.01.2018
15:0017:00

HS 6: 1st Examination date > information at u:find

Mon, 25.02.2019
15:00 17:00

HS 6: 2nd Examination date > information at u:find

Wed, 29.05.2018
15:0017:00

HS 4: 3rd Examination date > information at u:find

Thu, 26.09.2018
15.0017.00

HS 6: 4th Examination date > information at u:find
