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Expectation in Economics
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In this paper, the authors present a theory of the bargaining process and the formal properties of the concept of potential surprise, as well as a comparison with the orthodox view of the potential surprise.Abstract:
Preface to second edition Preface to first edition 1. Introduction 2. The nature of expectation 3. Expected clarifying of expectations and its influence on the pace of investment 4. The choice of assets to be held for speculative gain 5. Design of taxation to maintain the incentive to enterprise 6. A theory of the bargaining process 7. A comparison with the orthodox view Appendix. The formal properties of the concept of potential surprise.read more
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Ambiguity and Ambiguity Aversion
TL;DR: A review of early notions of subjective probability and Leonard Savage's joint axiomatic formalization of expected utility and subjective probability can be found in this article, with a discussion of current theoretical topics and newer examples of ambiguity aversion.
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Optimal Diversity: Increasing Returns versus Recombinant Innovation
TL;DR: In this paper, a simple model of variable, endogenous diversity is proposed to analyse the optimal balance between increasing returns to scale and recombinant innovation, under which conditions one of four solutions is optimal: complete specialization regardless of which option, complete specialization in one specific option, symmetric diversity, and asymmetric diversity.
Uncertainty, Decision, and Normal Form Games
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TL;DR: In this paper, a new equilibrium concept for normal form games motivated by the idea that players may have preferences which display uncertainty aversion is proposed. But it is not a generalization of the Nash equilibrium and maxmin play.
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Choice under complete uncertainty: axiomatic characterizations of some decision rules*
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Journal ArticleDOI
Highway Project Level Life-Cycle Benefit/Cost Analysis under Certainty, Risk, and Uncertainty: Methodology with Case Study
Zongzhi Li,Sunil Madanu +1 more
TL;DR: The existing project level life-cycle cost analysis approaches for estimating project benefi... as discussed by the authors, which is one of the key steps in the highway investment decision-making process is to conduct project evaluation.