Description
Book SynopsisRisk, Choice, and Uncertainty offers a new narrative of the three-century history of the study of decision making, tracing how crucial ideas have evolved and telling the stories of the thinkers who shaped the field. George G. Szpiro examines economics from theories of optimal decision making to behavioral science.
Trade ReviewIn
Risk, Choice, and Uncertainty, George Szpiro presents a remarkably readable, nonmathematical account of the theory of choice between risky alternatives. -- Harry Markowitz, winner of the 1990 Nobel Prize in Economic Sciences
Risk, Choice, and Uncertainty is a masterpiece of intellectual biography. In his best book to date, Szpiro’s wit and stylish writing make the history of thinking about thinking both intriguing and accessible. -- Sylvia Nasar, author of
Grand Pursuit: The Story of Economic GeniusEconomic theory treats humans as "utility maximizers". But what is "utility"? 300 years ago, Daniel Bernoulli declared it as relative gain in wealth. Later it became an abstract scale for consistent preferences, but this postulated "rationality" has its own paradoxes and controversies as concerns actual behavior. George Szpiro's sweeping historical tour de force of this topic entertains, informs and delights. -- Bernhard von Stengel, Professor of Mathematics, game theorist, London School of Economics and Political Science
Risk, Choice, and Uncertainty is a well-organized and pleasantly written account of the history of economics seen through the lens of individual decision making, ranging from expected utility to prospect theory. It will be of interest to a lay audience and curious students alike. -- Maria Pia Paganelli, Trinity University
Presents a new approach to the history of economic thought, providing a study of how people make decisions. * Journal of Economic Literature *
Highly recommended. * Choice *
Table of ContentsIntroduction
Part I. Happiness and the Utility of Wealth1. It All Began with A Paradox
2. More Is Better . . .
3. . . . at a Decreasing Rate
Part II. Mathematics Is the Queen of the Sciences . . . 4. The Marginalist Triumvirate
5. Forgotten Precursors
6. Betting on One’s Belief
7. Games Economists Play
8. Wobbly Curves
9. Comparing the Incomparable
Part III. . . . But Man Is the Measure of All Things10. More Paradoxes
11. Good Enough
12. Sunk Costs, the Gambler’s Fallacy, and Other Errors
13. Erroneous, Irrational, or Plain Dumb?
Notes
Bibliography
Index
