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<P>Risk Analysis in Theory and Practice (Academic Press Advanced Finance) by Jean-Paul Chavas<BR>Publisher: Academic Press (June 4, 2004) | 0121706214 | 256Pages | PDF | 2.84MB </P>
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<P>The objective of this book is to present this analytical framework and to illustrate how it can be used in the investigation of economic decisions under risk. </P>
<P>In a sense, the economics of risk is a difficult subject: it involves understanding human decisions in the absence of perfect information. </P>
<P>How do we make decisions when we do not know some of events affecting us? The complexities of our uncertain world and of how humans obtain </P>
<P>and process information make this difficult. In spite of these difficulties, much progress has been made. First, probability theory is the corner stone of risk </P>
<P>assessment. This allows us to measure risk in a fashion that can be communicated among decision makers or researchers. </P>
<P>Second, risk preferences are now better understood. This provides useful insights into the economic rationality of decision making under uncertainty. </P>
<P>Third, over the last decades, good insights have been developed about the value of information. </P>
<P>This helps better understand the role of information in human decision making and this book provides a systematic treatment of these issues</P>
<P> in the context of both private and public decisions under uncertainty.</P>