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Risk, ambiguity, and decision

Risk, ambiguity, and decision

Business & EconomicsMathematics
Pages
281
Published
1963
Language
English

Synopsis

This foundational work by Daniel Ellsberg explores the complexities of decision-making under conditions of risk and ambiguity. It critically examines traditional theories of rational choice, particularly expected utility theory, by introducing the concept of ambiguity aversion. Ellsberg's analysis reveals how individuals often prefer known risks over unknown ones, even when the probabilities are objectively the same, with significant implications for economics, philosophy, and behavioral science.

Prose complexity
10/10

Vibe

InformativeIntellectualComplexThought-Provoking

Genres

Business & Economics Mathematics Philosophy Economics Management

About the author

D
Daniel Ellsberg

Daniel Ellsberg (born April 7, 1931) is an American economist, activist and former United States military analyst who, while employed by the RAND Corporation, precipitated a national political controversy in 1971 when he released the Pentagon Papers, a top-secret Pentagon study of the U.S. government decision-making in relation to the Vietnam War, to The New York Times, the Washington Post and other newspapers. On January 3, 1973, Ellsberg was charged under the Espionage Act of 1917 alo...