Handbook of the economics of risk and uncertainty
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 branch...
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| Otros Autores: | |
| Formato: | Libro electrónico |
| Idioma: | Inglés |
| Publicado: |
Oxford :
North-Holland
2014.
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| Edición: | First edition |
| Colección: | Handbooks in economics ;
volume 1. |
| Materias: | |
| Ver en Biblioteca Universitat Ramon Llull: | https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009634734006719 |
Tabla de Contenidos:
- Half Title; Title; Copyright; Contents; contributors; Preface 1; Preface 2; 1 Uncertainty, Always With Us, But Not Always Recognized by Economists; 2 Ignorance; 3 Group Decision; 4 Unanticipated Themes; 5 A Final Word; References; Introduction; 1 Axiomatic Foundations of Expected Utility and Subjective Probability; 1.1 Introduction; 1.1.1 Decision Making in the Face of Uncertainty and Subjective Probabilities: Interpretations and Methodology; 1.1.2 A Brief History; 1.1.3 Belief Updating: Bayes' Rule; 1.1.4 The Analytical Framework; 1.2 Expected Utility Under Risk
- 1.2.1 The Analytical Framework1.2.2 The Characterization of the Preference Relations; 1.2.3 Representation; 1.2.4 Strong Continuity and Expected Utility Representation for Borel Probability Measures; 1.3 Expected Utility Under Uncertainty and Subjective Probabilities; 1.3.1 Savage's Analytical Framework; 1.3.2 The Preference Structure; 1.3.3 Subjective Expected Utility Representation; 1.3.4 The Model of Anscombe and Aumann; 1.3.5 Wakker's Model; 1.3.6 Beliefs and Probabilities; 1.3.7 State-Dependent Preferences; 1.4 Bayesian Decision Theory and the Representation of Beliefs
- 1.4.1 The Analytical Framework1.4.2 Preferences on Strategies and their Representation; 1.4.3 Action-Dependent Subjective Probabilities on S; 1.5 Expected Utility Theory with Incomplete Preferences; 1.5.1 Expected Multi-Utility Representation Under Risk; 1.5.2 Expected Multi-Utility Representation Under Uncertainty; 1.5.2.1 Special Cases; 1.6 Conclusion; Acknowledgments; References; 2 Rationality and Dynamic Consistency Under Risk and Uncertainty; 2.1 Introduction and Outline; 2.1.1 Purpose of Chapter; 2.1.2 The Expected Utility (or EU) Hypothesis; 2.1.3 Paradoxes; 2.1.4 Non-Expected Utility
- 2.1.5 Chapter Outline2.2 Static Rationality with Deterministic Consequences; 2.2.1 Preferences in Consumer Theory; 2.2.2 Consequence Choice Functions; 2.2.3 Base Preference Relations; 2.2.4 Arrow's Conditions for Ordinality; 2.2.5 Experimental Tests of Ordinality; 2.2.5.1 Background; 2.2.5.2 Two-Dimensional Choice Problems; 2.2.5.3 The Attraction Effect; 2.2.5.4 The Compromise Effect; 2.2.5.5 Attempted Explanations; 2.3 Static Rationality with Risky Consequences; 2.3.1 The Mixture Space of Risky Roulette Lotteries; 2.3.2 The Expected Utility Hypothesis
- 2.3.3 Implications of the Expected Utility Hypothesis2.3.3.1 Utility Transformations; 2.3.3.2 Von Neumann-Morgenstern Independence; 2.3.3.3 Archimedean Continuity; 2.3.4 Jensen's Three Axioms; 2.3.5 Experimental Tests; 2.3.5.1 Preference Reversal under Risk; 2.3.5.2 The Allais Paradox; 2.3.5.3 The Common Consequence Effect; 2.3.5.4 The Common Ratio Effect; 2.4 Dynamic Rationality with Deterministic Consequences; 2.4.1 Dynamic Inconsistency; 2.4.1.1 Naïve Behavior; 2.4.1.2 Sophisticated Behavior; 2.4.1.3 Commitment Devices; 2.4.2 Example: A Strict Preference Cycle and the Potential Addict
- 2.4.2.1 Three Decision Trees
