Uncertainty in Economics
Readings and Exercises
Published on 10. May 2014
586 pages
978-1-4832-6450-9 (ISBN)
Description
Uncertainty in Economics: Readings and Exercises provides information pertinent to the fundamental aspects of the economics of uncertainty. This book discusses ho uncertainty affects both individual behavior and standard equilibrium theory. Organized into three parts encompassing 30 chapters, this book begins with an overview of the relevance of expected utility maximization for positive and normative theories of individual choice. This text then examines the biases in judgments, which reveal some heuristics of thinking under uncertainty. Other chapters consider the effect of restricting trade in contingent commodities to those trades that can be affected through the stock and bond markets. This book discusses as well the individual problem of sequential choice and equilibria, which are built around the notion of sequential choice. The final chapter deals with an entirely different aspect of the economics of information and reverts to the assumption that markets are perfect and costless. This book is a valuable resource for economists and students.
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Peter A. Diamond | Michael Rothschild
Uncertainty in Economics
Economic Theory, Econometrics and Mathematical Economics
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12/1978
Academic Press
€32.81
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Content
¿PrefaceI. Individual Choice in a Static Setting 1. Risk Taking by Individual Option-Case Study-Cigarette Smoking, in "Perspectives on Benefit Risk Decision Making," pp. 73-84. Washington, D.C.: National Academy of Engineering, 1972 2. Judgment Under Uncertainty: Heuristics and Biases, Science 185 (1974), 1124-1131 3. Axiomatic Theories of Choice, Cardinal Utility and Subjective Probability: A review, in "Allocation Under Uncertainty: Equilibrium and Optimality,"(J. Drèze, Ed.), pp. 3-23. New York and Toronto: Wiley, 1974 4. Risk Aversion in the Small and in the Large, Econometrica 32 (1964), 122-136 Exercise on Demand for Insurance 5. Some Remarks on Measures of Risk Aversion and their Uses, Journal of Economic Theory 1 (1969), 315-329 6. Increasing Risk I: A Definition, Journal of Economic Theory 2 (1970), 225-243 Comment 7. Notes and Exercises on Increasing Risk 8. Savings and Uncertainty: The Precautionary Demand for Saving, Quarterly Journal of Economics 82 (1968), 465-473 Exercise on Savings Under Uncertainty 9. Two Omitted Topics: Mean-Variance Analysis and the Expected Value of Information 10. The Effect of Uncertainty on Resource Allocation, Quarterly Journal of Economics 85 (1971), 440-453. (Part of the Article is Omitted)II. General Equilibrium in a Static Setting 11. "Theory of Value," Chapter 7, pp. 98-102, New York: Wiley, 1959 References Exercise on Equilibrium Prices and Consumption Comment 12. Competitive Equilibrium Under Uncertainty, Econometrica 36 (1968), 31-58 Comment 13. The Role of a Stock Market in a General Equilibrium Model with Technological Uncertainty, American Economic Review 57 (1967), 759-773 (Appendix Omitted) Comment 14. Exercise on Uniform Pricing 15. The Market for Lemons: Qualitative Uncertainty and the Market Mechanism, Quarterly Journal of Economics 84 (1970), 488-500 Comment 16. Notes and Exercises on the Use of Imperfect Information 17. Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information, Quarterly Journal of Economics 90 (1976), 629-650 Comment 18. Job Market Signaling, Quarterly Journal of Economics 87 (1973), 355-374 Exercise: A Signaling Equilibrium with a Continuum Of Skill Classes Comment 19. Overinsurance and Public Provision of Insurance: The Roles of Moral Hazard and Adverse Selection, Quarterly Journal of Economics 88 (1974), 44-54 Exercises on Optimal Insurance Comment 20. Insurance, Information, and Individual Action, American Economic Review 61 (1971), 380-387 Comment 21. Uncertainty and the Welfare Economics of Medical Care, American Economic Review 53 (1963), 941-969 (Appendix Omitted) 22. Transaction Costs, Risk Aversion, and the Choice of Contractual Arrangements, Journal of Law and Economics 12 (1969), 23-42 Comment 23. Two Omitted Topics: Product Liability and Workers' Compensation 24. Uncertainty and the Evaluation of Public Investments, American Economic Review 60 (1970), 364-378 CommentIII. Sequential Choice and Equilibrium with Limited Information 25. Searching for the Lowest Price When the Distribution of Prices is Unknown, Journal of Political Economy 82 (1974), 689-711 Exercises on Search Rules 26. Central Planning, Monopoly, Duopoly 27. Models of Market Organization with Imperfect Information: A Survey, Journal of Political Economy 81 (1973), 1283-1308 Comment Exercise on Information and Prices 28. Equilibrium Distributions of Sales and Advertising Prices, Review of Economic Studies (Appendix Omitted) Vol. XLIV (3), (1977), 465-491 29. Equilibrium Search and Unemployment, Journal of Economic Theory 7 (1974), 188-209 Comment 30.
