Uncertainty, Production, Choice, and Agency: The State-Contingent Approach - Softcover

Chambers, Robert G.

Softcover

ISBN 10: 0521785235 ISBN 13: 9780521785235

Publisher: Cambridge University Press, 2000

Synopsis

This book demonstrates that the state-contingent approach provides the best way to think about all problems in the economics of uncertainty, including problems of consumer choice, the theory of the firm, and principal agent relationships. The authors demonstrate that dual methods apply under uncertainty and that the dual representations can be developed for stochastic technologies. Moreover, proper exploitation of the properties of alternative primal and dual representations of preferences allows analysts to generalize and extend the results of the existing literature on preferences under uncertainty, thus making expected-utility theory largely superfluous for many decisions. These insights open the way for developments in the basic theory of production under uncertainty, the theory of hedging behavior, the analysis of agency problems and the theory of production insurance.

About this title

Review

'... tremendous scope of achievement in this signal contribution to the literature ... I would be remiss in doing other than recommend that Journal readers join me in treasuring this book in their library.' The Australian Journal of Agricultural and Resource Economics

Book Description

Demonstrates that the state-contingent approach provides the best way to consider all problems in the economics of uncertainty, including consumer choice, the theory of the firm, and principal agent relationships. The authors show that dual methods apply under uncertainty and that the dual representations can be developed for stochastic technologies.

Edition details

• Publisher: Cambridge University Press
• Publication date: 2000
• Language: English
• ISBN 10: 0521785235
• ISBN 13: 9780521785235
• Binding: Paperback
• Number of pages: 390