IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789813143968_0005.html
   My bibliography  Save this book chapter

Choice and Uncertainty

In: MICROECONOMICS with SPREADSHEETS

Author

Listed:
  • Suren Basov

Abstract

Economic actors are often forced to make choices without full knowledge of the consequences. Consider, for example, the decision whether to take an umbrella with you today. The decision would be easy if you knew whether it will rain. But what should your choice be if you are not sure? Your choice would still be easy if you knew the objective probability that it will rain today. But what if even the probability is not known? The most popular theory in economics, known as subjective expected utility theory, argues that there is no difference between the two situations. Therefore, we will consider in this chapter choice under uncertainty assuming the odds are known. Bibliographic notes in the end of this part will direct you to the references that challenge this assumption.

Suggested Citation

  • Suren Basov, 2017. "Choice and Uncertainty," World Scientific Book Chapters, in: MICROECONOMICS with SPREADSHEETS, chapter 5, pages 61-69, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813143968_0005
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789813143968_0005
    Download Restriction: Ebook Access is available upon purchase.
    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789813143968_0005
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Microeconomics; Game Theory; Producer Theory; Consumer Theory; Economics of Information; Basics of Industrial Organization; Excel; The Solver;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:wschap:9789813143968_0005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.