The Microeconomics of Risk and Information

This is a long-awaited book on risk and uncertainty pitched at the intermediate level. Its approach is intuitive with full graphical treatments, while still rigorous. It would make an ideal textbook for undergraduate students who want to master the economics of risk and uncertainty.' Ichiro Obara, Associate Professor in the Department of Economics, University of California, Los Angeles, USA 'This book offers asolid introduction to the microeconomics of behaviour under risk, treating consumers, producers and market interaction in a unified framework. It is ideal for an introductory course and as a reference source.' Joop Hartog, Professor of Economics, Amsterdam School of Economics, The Netherlands 'The search for a final year undergraduate book in the area of risk and information is finally over. This book does an excellent job of extending the standard theory of choice in intermediate microeconomic theory courses to introduce students to the economics of risk and information. The text fully achieves its objective of providing understanding rather than just information. The level of presentation is most appropriate for a final year undergraduate course: a two-dimensional setting with both graphical and mathematical treatment.' Doctor Murat Genc, Department of Economics, University of Otago, New Zealand

The book covers the principal areas of research in the microeconomics of risk and information. Keeping to a strict two-dimensional environment, the relationship with intermediate undergraduate microeconomics is made clear. While an integral part of the book, the mathematics is presented at an introductory level.The Microeconomics of Risk and Information covers the principal areas in the field, including risk aversion, simple portfolio theory, precautionary savings, production under risk, risk sharing in the Edgeworth box, adverse selection and moral hazard. Keeping to a strict two-dimensional environment and using only some basic calculus, this textbook is written principally for students of advanced undergraduate and beginning graduate courses in economics, finance, and other fields, who have studied microeconomics at the intermediate level. Compact and clear, the book reflects the author's twenty-year experience teaching the course in the one-semester format to students around the world.