Surveys in the Economics of Uncertainty

This volume contains five pairs of specially commissioned essays surveying some of the most important and rapidly growing areas of the economics of uncertainty. These essays provide an entry into, and overview of, some of the most recent developments in economics. The chapters are arranged in matched pairs, the first of each being a statement of the latest theoretical findings in each field, and the second providing an overview of the policy and/or empirical implications of that field. The first pair of chapters looks at the foundations of decision-making under uncertainty and the second at the important principal/agent theory which has provided much insight into economic phenomena. The third pair overviews search theory, one of the most significant developments of the last decade, while the fourth pair surveys the theory of contracts. The final pair of chapters examines the economics of tax evasion, both theoretically and empirically.