Personal Growth, Mathematics, Mathematics, Economics - Mathematical & Quanitative Methods, Mathematical Modeling, Management & Leadership

Uncertainty in Economic Theory

Name: Uncertainty in Economic Theory
Author: Itzhak Gilboa
ISBN: 9781134344154

by Itzhak Gilboa (Editor)

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Overview

"Recent decades have witnessed developments in decision theory that propose an alternative to the accepted Bayesian view. According to this view, all uncertainty can be quantified by probability measures. This view has been criticized on empirical as well as on conceptual grounds. David Schmeidler has offered an alternative way of thinking about decision under uncertainty, which has become popular in recent years." "This book provides a review and an introduction to this new decision theory under uncertainty. The first part focuses on theory: axiomatizations, the definitions of uncertainty aversion, of updating and independence, and so forth. The second part deals with applications to economic theory, game theory, and finance." This is the first collection to include chapters on this topic, and it can thus serve as an introduction to researchers who are new to the field as well as a graduate course textbook. With this goal in mind, the book contains survey introductions that are aimed at a graduate level student, and help explain the main ideas, and put them in perspective.