Essays in Economics of Uncertainty PDF Download

Author: Jean-Jacques Laffont
Publisher: Harvard University Press
ISBN: 9780674265554
Category : Business & Economics
Languages : en
Pages : 160

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Book Description
These three elegant essays develop principles central to the understanding of the diverse ways in which imperfect information affects the distribution of resources, incentives, and the evaluation of economic policy. The first concerns the special role that information plays in the allocation process when it is possible to improve accuracy through private investment. The common practice of hiring "experts" whose information is presumably much better than their clients' is analyzed. Issues of cooperative behavior when potential group members possess diverse pieces of information are addressed. Emphasis is placed on the adaptation of the "core" concept from game theory to the resource allocation model with differential information. The second essay deals with the extent to which agents can influence the random events they face. This is known as moral hazard, and in its presence there is a potential inefficiency in the economic system. Two special models are studied: the role of moral hazard in a monetary economy, and the role of an outside adjudicatory agency that has the power to enforce fines and compensation. The final essay discusses the problem of certainty equivalence in economic policy. Conditions under which a full stochastic optimization can be calculated by solving a related, much simpler "certainty equivalence" problem are developed. The reduction in the complexity of calculation involved is very great compared with the potential loss of efficiency.

Author: Mark Joseph Machina
Publisher:
ISBN:
Category : Risk
Languages : en
Pages : 324

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Author: Michel Demers
Publisher:
ISBN:
Category : Economic forecasting
Languages : en
Pages : 205

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Author: John L. Lott Jr.
Publisher: Routledge
ISBN: 1134745605
Category : Business & Economics
Languages : en
Pages : 304

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The theory of the firm has recently undergone a dramatic transformation, drawing heavily on the pathbreaking work of Armen Alchian. This volume explores his contribution to the debate, including essays by Harold Demetz, Ben Klein, Jerry Jordan and Art Devany.

Author: Jacques Drèze
Publisher: CUP Archive
ISBN: 9780521386975
Category : Business & Economics
Languages : en
Pages : 460

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Book Description
Professor Dreze is a highly respected mathematical economist and econometrician. This book brings together some of his major contributions to the economic theory of decision making under uncertainty, and also several essays. These include an important essay on 'Decision theory under moral hazard and state dependent preferences' that significantly extends modern theory, and which provides rigorous foundations for subsequent chapters. Topics covered within the theory include decision theory, market allocation and prices, consumer decisions, theory of the firm, labour contracts, and public decisions.

Author: Oliver Simon d'Arcy Hart
Publisher:
ISBN:
Category :
Languages : en
Pages : 258

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Author: Oliver D. Hart
Publisher:
ISBN:
Category :
Languages : en
Pages : 129

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Author: David Aaron Sykes
Publisher:
ISBN:
Category : Probabilities
Languages : en
Pages : 270

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Author: Adam Szeidl
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 144

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Author: Gautam Bhattacharya
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 139

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