This book uses real-world examples to show how individual and collective risks can be blended and treated in a reliable decision-making framework that draws its inspiration from decision theory and market based mechanisms. It then goes into deeper detail by looking at the implications of having to face risks (a) where some kind of probabilistic description is available and (b) where none is available, using the example of insurable risks vs non-insurable risks. Again, by using real-world examples it shows how decision-makers can cope with such situations by a proper understanding and use of modern financial techniques.

About the Author

Professor ROBERT KAST has a research position at LAMETA-CNRS, University of Montpellier (France) and has published papers and books in decision theory and financial market theory.

ANDR� LAPIED is Professor of Economics at GREQAM, University Paul C�zanne in Aix-en-Provence (France) and has published papers and books in financial market theory and economic theory.

They work together in risk theory and have achieved several governmental investigations on applied problems. Some of them raise questions on risk management that are addressed in this book.

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