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.
Sprache
Verlagsort
Verlagsgruppe
Pearson Education Limited
Zielgruppe
Für höhere Schule und Studium
Für Beruf und Forschung
Illustrationen
Maße
Höhe: 235 mm
Breite: 178 mm
Gewicht
ISBN-13
978-0-7450-1592-7 (9780745015927)
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Schweitzer Klassifikation
PART ONE. Framework of Analysis and Basic Notation. Criteria for Evaluating Lotteries. The Expected Utility Criterion and its Implications. Other Measures of Risk Aversion. The Notion of a Mean-Preserving Change in Risk. A Smorgasbord of Subjects. Uncertainty and Contingent Claims. PART TWO. A General Description of the Problems. Portfolio Choices Under Uncertainty. The Demand for Insurance. The Production Decision Under Uncertainty. PART THREE. General Description of the Problems Treated. Efficient Risk-sharing. The Complete Markets Model. The Capital Asset Pricing Model. Uncertainty and Asymmetric Information.
