Junior Lecturer in Economics, Kemmy Business School, University of Limerick, Ireland.
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EC4024 Lecture 8 Choice Under Uncertainty

Introduction

We’ve spent some time going over how market professionals see the interaction between risk and uncertainty. Now we’ll work on looking at how economists view the situation. It’s a rather strange story to tell, so we’ll tell the story using examples of pricing risky assets.

Length: 50 minutes

Click the link below for handouts and slides and links.

Slides


Handoutsec4024_Lecture8_choice.pdf

ec4024_Lecture8_choice.pdf

Further Reading

Ellsberg paradox - Wikipedia, the free encyclopedia

Allais paradox - Wikipedia, the free encyclopedia