Thinking through and working on problem sets is the most important learning method in this course. Most of the “self-study” in the estimated workload (see course syllabus) consists of working on problem sets. The schedule of problem set deadlines is available in the course schedule, which is linked from the course home page. (Working on problem sets is also the best single method of preparing for the exam.) While there is much variability between problems, on average one numbered problem in a set is expected to take about 1-2 hours to complete.
Homework solutions to each problem set must be submitted in one pdf-file (unless otherwise noted). Add your name and student ID on the top of the first page, this makes graders’ work easier. Make sure to test your scanning quality well before the first deadline. You can update your submission until the deadline. The MyCourses upload system allows for a few extra minutes during which you can still upload your set. After the grace period closes submission becomes impossible -- late submissions will not be accepted.
You are allowed and indeed encouraged to discuss the problem sets with fellow students taking this course. However, each solution must be individually written up (with the exception of specifically pointed out Group work).
For a solution to be acceptable it must include the explanation behind your reasoning, including calculations where applicable. A mere bottom line answer is not acceptable.
The features explained in the initial part of a problem, before any possible subparts (a, b, c…) applies to the entire problem unless otherwise noted. The features in each subpart only apply to that subpart, unless otherwise noted. If there are further instructions below the subparts they also apply to the entire problem unless otherwise noted. Maximum points for each question are shown in the problem set, they are equally divided between the subparts, unless otherwise noted.
Model solutions will be published in MyCourses soon after the deadline. Points earned from each question will be available usually within one week. Questions regarding the grading should be addressed to the course assistant.
A small number of interactive problems (less than 15% of total) will be done in class. They are graded separately, with the answers typically submitted during class.
Unless otherwise stated, you can assume that decision-makers are risk neutral and maximize the present value of their own payoffs (typically profits for firms, utility or consumer surplus for consumers). For discounting purposes, you can assume that future periodic payoffs are realized at the end of a period. In particular, period t=0 refers to now immediately, period t=1 to the end of first period, that is, one period from now, etc.