The Economics of Uncertainty and Information.

• DOI: 10.2307/2555080
• Publication Date: 2006-06-19T14:11:01Z
• Authors: Graham Loomes; Jean-Jacques Laffont
• Keywords: Certainty; Information economics; Futures studies; Information transmission

The Economics of Uncertainty and Information may be used in conjunction with Loffont's Fundamentals an advanced course microeconomics. Both texts provide a thorough account modern thinking on the subject wealth carefully chosen examples problems.The first four chapters summarize essential tools analysis uncertainty information: theory individual behavior under uncertainty, measures risk aversion risk, notions certainty equivalence information structure. Subsequent introduce contingent markets, model systems incomplete markets define concept perfect foresight equilibrium, cover two fundamental institutions for sharing - stock market insurance, show how transmission by prices renders structures endogenous, study personalized exchange asymmetric information.Each chapter concludes list suggested readings auxiliary sections which go into more detail about certain aspects subject. book review problems exercises.Jean Jacques Laffont is Professor Economic Sciences at Universite des Sociales de Toulouse Director Studies I'Ecole Hautes Etudes en Sociales.