The fundamental topic of choice theory - how do economic agents decide when faced with a situation of risk - and its accompanying theoretical models are here dissected and analyzed. Using a textbook style, the authors present the microfoundations of risk, uncertainty and its management with specific application to insurance and finance. The book analyzes the formal evaluation of risky situations, analyzes individual decisions under uncertainty and determines the markets for risk, including market incompleteness and risk transfer and welfare. It also discusses portfolio choices, insurance decisions and production decisions in situations of risk.
- ISBN10 0745015921
- ISBN13 9780745015927
- Publish Date 4 November 1994
- Publish Status Out of Print
- Out of Print 24 October 2009
- Publish Country GB
- Publisher Pearson Education Limited
- Imprint Prentice-Hall
- Format Paperback
- Pages 320
- Language English