The course teaches theories and abstract concepts and illustrates them with practical labs and experiments. The course starts with the problem of making an individual, rational investment decision and reviews the contained concepts and the feasibility of obtaining estimates on the concepts. In this context, strategies for data acquisition and search cost are reviewed. The learnt concepts of utility and preferences are then generalized to collective decisions and the information sharing fallacy is identified. The fallacy is connected to game theoretical insights. Having conceptualized conventional hinders in attaining collective decisions that satisfies the decision-makers, Mechanism Design is introduced as a technology for achieving satisfactory solutions.
Throughout the course, students are assigned to a team and the performance of the team and its members is monitored by each student by means of a self-reflecting protocol. The student‘s practical implementation of the theories is assessed and feedbacked in frequent team seminars.