Syllabus academic year 2010/2011
(Created 2010-07-25.)
Credits: 7,5. Grading scale: TH. Cycle: A (Second Cycle). Main field: Technology. Language of instruction: The course will be given in Swedish. EXTN60 overlaps following cours/es: MIO120. Compulsory for: RH4rh. Course coordinator: Erik Wengström,, Department of Economics. Prerequisites: VBR180 Risk Analysis Methods, FMS065 Statistical Methods for Safety Analysis. Assessment: Tuition consists of lectures, exercises and seminars, where essays are presented and discussed. The essays are written i small groups. Guest lectures are planned for the course. A written exam takes places at the end of the course. Examination is based both on individual performance and on work carried out in groups. Home page:

What do we mean by an economic perspective? Opportunity cost, value, price and other fundamental economic concepts

Rules of behaviour in decision-making for the agents of society

The principles of risk manegemtn such as diversification and insurance

Management of risk and uncertainty as a game or "lottery"

The use of decision trees in the process of making rational decisions where risk is a factor

The difference between expected value and expected utility and the theory of expected utility

Attitudes towards risk with the central concepts of risk aversion, risk seeking and risk neutrality, the value of risk in itself

Risk aversion premia and certainty equivalents

Prerequisites for being able to use expected values when risk is present in society's decisions

Prospect theory, subjective and objective risk, private and public risk, non-rational individual behaviour

Asymmetric information as a problem for efficient risk sharing in society

The concepts of moral hazard and adverse selcetion and the need för socity to adjust behaviour when those phenomena are present

Cost-benefit analysis, its principles, abilities and limitations

From utility to money and from individual to society

Valuation methods for non-market-priced effects such as risk changes in traffic, the environment and health

The cvalue of a statisical life: definition, interpretation, measurement issues and its use in decision.making

Examples of risk valuation in traffic, envornmental and health issues in Sweden

International comparisons of risk valuations.

Mattsson, B. Riskhantering vid skydd mot olyckor - problemlösning och beslutsfattande. Räddningsverket 2000
Mattsson, B. Kostnads-nyttoanalys. Värdegrunder, användbarhet och användning. Räddningsverket 2004
Supplementary material