The Microeconomics of Risk and Information

Introduction.- I INDIVIDUAL DECISION MAKING UNDER RISK.- Risk and preferences.- Risk aversion.- Applications.- II RISK SHARING ENVIRONMENTS.- Perfect information.- Adverse selection.- Moral hazard.- APPENDICES.- Mathematical toolkit.- A primer on consumer theory.

RICHARD WATT is Associate Professor of Economics in the Department of Economics and Finance at the University of Canterbury, New Zealand.

'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 Genç, Department of Economics, University of Otago, New Zealand

"This book aims to provide a one-semester course in the microeconomics of risk and information for, it seems, final-year undergraduate economics or finance students. It is structured very simply and appealingly, going from chapters on risk, preferences and risk aversion through a chapter on four applications to concluding chapters on adverse selection and moral hazard, the 'information' part of the course." (Martin Richardson, Economic Record, Vol. 91 (292), March, 2015)