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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
Mark J. Machina and Marciano Siniscalchi
736
which is called the ‘degree of his belief in
P
.’ We thus define degree of belief in a way
which presupposes the use of the mathematical expectation.” (1926, §3).
Ramsey defined a proposition
P
to be ethically neutral if, holding all other aspects
of the world constant, the individual is indifferent between its truth or falsity.
The individual is said to have a “degree of belief 1/2” in such a proposition if the
prospects
are indifferent for all values α and β. Ramsey’s main assumptions are:
1. There exists at least one ethically neutral proposition with degree of belief 1/2
2. If
P
and
Q
are both ethically ...
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Publisher Resources

ISBN: 9780444536853