The fundamental topic of choice theory - how do economic agents decide when faced with a situation of risk - and its accompanying theoretical models are here dissected and analyzed. Using a textbook style, the authors present the microfoundations of risk, uncertainty and its management with specific application to insurance and finance. The book analyzes the formal evaluation of risky situations, analyzes individual decisions under uncertainty and determines the markets for risk, including market incompleteness and risk transfer and welfare. It also discusses portfolio choices, insurance decisions and production decisions in situations of risk.
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In this translation of the French text (1992, Ediscience International, Paris), authors Eeckhoudt (economics, Catholic U. of Mons, Lille and Louvain) and Gollier (economics, U. of Toulouse and HEC School of Management) analyze the concept of business risk--its evaluation, management, and dispersal, specifically applied to insurance and finance. They discuss theoretical microfoundations, game theory, and utility theory in connection with the evaluation of risky situations, individual decisions under conditions of uncertainty, and the markets for risk. Includes exercises, axioms, and theorems throughout. Annotation c. by Book News, Inc., Portland, Or.
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Book Description Harvester Wheatsheaf, 1996. Paperback. Book Condition: Used: Good. First English Edition, Second Pr. Bookseller Inventory # SONG0133428257