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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
Axiomatic Foundations of Expected Utility and Subjective Probability
11
p. 45). Implicit in the definition of the state space is the notion that there is a unique
true state. Subsets of the set of states are events. An event is said to obtain if it includes
the true state.
A consequence is a description of anything that might happen to the decision
maker. The set of consequences is arbitrary. A combination of an act, f, chosen by the
decision maker, and a state, s, “selected” by nature determines a unique consequence,
c
f , s
C
.
Decision makers are characterized by preference relations,
on F, having the usual
interpretation, namely,
f
g
means ...
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Publisher Resources

ISBN: 9780444536853