The need to understand the theories and applications of economic and finance risk has been clear to everyone since the financial crisis, and this collection of original essays proffers broad, high-level explanations of risk and uncertainty. The economics of risk and uncertainty is unlike most branches of economics in spanning from the individual decision-maker to the market (and indeed, social decisions), and ranging from purely theoretical analysis through individual experimentation, empirical analysis, and applied and policy decisions. It also has close and sometimes conflicting relationships with theoretical and applied statistics, and psychology. The aim of this volume is to provide an overview of diverse aspects of this field, ranging from classical and foundational work through current developments.
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In this collection of 17 articles, top scholars synthesize and analyze scholarship on risk and uncertainty. Combining theoretical results with empirical and experimental findings, the Handbook defines the implications of scholarly work on risk to subjects in economics, management, finance, games, auctions, welfare, insurance, health, and the environment. It is the only volume on risk and uncertainty to examine this growing field in a systematic, comprehensive manner.
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