This book presents a justification of the state-contingent approach to the economics of uncertainty.
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'... tremendous scope of achievement in this signal contribution to the literature ... I would be remiss in doing other than recommend that Journal readers join me in treasuring this book in their library.' The Australian Journal of Agricultural and Resource Economics
Demonstrates that the state-contingent approach provides the best way to consider all problems in the economics of uncertainty, including consumer choice, the theory of the firm, and principal agent relationships. The authors show that dual methods apply under uncertainty and that the dual representations can be developed for stochastic technologies.
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