The Economics and Philosophy of Risk

In Conrad Heilmann & Julian Reiss (eds.), The Routledge Handbook of the Philosophy of Economics. Routledge (2021)
  Copy   BIBTEX

Abstract

Neoclassical economists use expected utility theory to explain, predict, and prescribe choices under risk, that is, choices where the decision-maker knows---or at least deems suitable to act as if she knew---the relevant probabilities. Expected utility theory has been subject to both empirical and conceptual criticism. This chapter reviews expected utility theory and the main criticism it has faced. It ends with a brief discussion of subjective expected utility theory, which is the theory neoclassical economists use to explain, predict, and prescribe choices under uncertainty, that is, choices where the decision-maker cannot act on the basis of objective probabilities but must instead consult her own subjective probabilities.

Links

PhilArchive

External links

  • This entry has no external links. Add one.
Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Similar books and articles

Risk aversion and the long run.Johanna Thoma - 2019 - Ethics 129 (2):230-253.
Economic (ir)rationality in risk analysis.Sven Ove Hansson - 2006 - Economics and Philosophy 22 (2):231-241.
Risk and Rationality.Lara Buchak - 2013 - Oxford, GB: Oxford University Press.
On the definition of risk aversion.Aldo Montesano - 1990 - Theory and Decision 29 (1):53-68.
Can risk aversion survive the long run?Hayden Wilkinson - 2022 - Philosophical Quarterly 73 (2):625-647.

Analytics

Added to PP
2021-08-27

Downloads
464 (#41,895)

6 months
147 (#23,420)

Historical graph of downloads
How can I increase my downloads?

Author's Profile

H. Orri Stefansson
Stockholm University

References found in this work

No references found.

Add more references