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Uncertainty in Economics
Readings and Exercises
- 1st Edition - May 10, 2014
- Editors: Peter Diamond, Michael Rothschild
- Language: English
- Paperback ISBN:9 7 8 - 1 - 4 8 3 2 - 3 8 1 3 - 5
- eBook ISBN:9 7 8 - 1 - 4 8 3 2 - 6 4 5 0 - 9
Uncertainty in Economics: Readings and Exercises provides information pertinent to the fundamental aspects of the economics of uncertainty. This book discusses ho uncertainty… Read more
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Request a sales quoteUncertainty 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.
Preface
I. 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
Comment
III. 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. The Private and Social Value of Information and the Reward to Inventive Activity, American Economic Review 61 (1971), 561-574
- No. of pages: 586
- Language: English
- Edition: 1
- Published: May 10, 2014
- Imprint: Academic Press
- Paperback ISBN: 9781483238135
- eBook ISBN: 9781483264509
PD
Peter Diamond
Affiliations and expertise
Massachusetts Institute of Technology, Cambridge, Massachusetts, U.S.A.MR
Michael Rothschild
Affiliations and expertise
University of California at San Diego, La Jolla, U.S.A.