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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
Rationality and Dynamic Consistency Under Risk and Uncertainty
45
2.1.5 Chapter Outline
Following this introduction, the first part of the chapter provides some essential back-
ground regarding the theory of rational choice in static settings. The two Sections 2.2
and 2.3 are intended to remind the reader of the standard “static” approach to rational
planning that is encountered in most microeconomics textbooks. In this approach, fol-
lowing von Neumann’s (1928) definition of a game in normal form, the decision maker
is typically assumed to choose a planned course of action once and for all. Section 2.2
focuses on the case when actions have deter ...
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Publisher Resources

ISBN: 9780444536853