Skip to Main Content
Handbook of the Economics of Risk and Uncertainty
book

Handbook of the Economics of Risk and Uncertainty

by Mark Machina, W. Kip Viscusi
November 2013
Beginner content levelBeginner
896 pages
35h 10m
English
North Holland
Content preview from Handbook of the Economics of Risk and Uncertainty
Uncertainty and Imperfect Information in Markets
345
superior to no trade even at minimal quality (i.e.,
q
c(q
)
). Then there is an equilibrium in
which the seller sets the same price every period, which equals the quality of the good, and there is
trade in every period. The quality of the good solves the program (6.5.6) and is never greater than
any welfare-maximizing quality. It is strictly less for all T if c(·) is strictly convex and everywhere
differentiable.
Continuing to assume c(·) differentiable and strictly convex, the following is readily
shown:
Corollary6.4. Maintain the assumptions of Proposition 6.25. Assume, in addition, that c
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Handbook of the Economics of Finance

Handbook of the Economics of Finance

George M. Constantinides, Milton Harris, Rene M. Stulz
Quantitative Financial Risk Management: Theory and Practice

Quantitative Financial Risk Management: Theory and Practice

Constantin Zopounidis, Emilios Galariotis
Mathematical Methods for Finance: Tools for Asset and Risk Management

Mathematical Methods for Finance: Tools for Asset and Risk Management

Sergio M. Focardi, CFA Frank J. Fabozzi, Turan G. Bali

Publisher Resources

ISBN: 9780444536853