The Economics of Uncertainty and Insurance
The Economics of Uncertainty and Insurance, ISBN: 9781796685015, 2019
225 Pages Posted: 15 Apr 2019
Date Written: March 19, 2019
This text provides an introduction to the analysis of economic decisions under uncertainty, with particular focus on insurance markets. "The Economics of Uncertainty and Insurance" is relatively short (220 pages) and richly illustrated with 80 figures. It is suitable for both self-study and as the basis for an upper-division undergraduate course. The book is written to be accessible to anyone with minimum knowledge of calculus, in particular the ability to calculate the derivative of a function of one variable. At the end of each chapter there is a collection of exercises that are grouped according to that chapter's sections. Complete and detailed answers for each exercise are given in the last section of each chapter. The book contains a total of 88 fully solved exercises.
Keywords: Uncertainty, Expected Utility, Risk attitude, Insurance, Moral hazard, Adverse selection, Risk premium
JEL Classification: D81, D82
Suggested Citation: Suggested Citation