Uncertainty in economics: Readings and exercises (Economic theory and mathematical economics)

Hardcover

ISBN 10: 0122148509 ISBN 13: 9780122148507

Publisher: Academic Press, 1978

Provides information pertinent to the fundamental aspects of the economics of uncertainty. This book discusses how uncertainty affects both individual behavior and standard equilibrium theory. Organized into three parts encompassing 30 chapters, this book begins with an overview of the relevance of expected utility maximization for positive and normative theories of individual choice. This text then examines the biases in judgments, which reveal some heuristics of thinking under uncertainty. Other chapters consider the effect of restricting trade in contingent commodities to those trades that can be affected through the stock and bond markets. This book discusses as well the individual problem of sequential choice and equilibria, which are built around the notion of sequential choice. The final chapter deals with an entirely different aspect of the economics of information and reverts to the assumption that markets are perfect and costless. This book is a valuable resource for economists and students.