Probability in Economics

Notions of probability and uncertainty have been increasingly predominant in modern economics. This book considers the philosophical and practical difficulties inherent in integrating these concepts into realistic economic situations. It addresses probability, utility, and rationality within current economic thought and practice; concepts of ignorance and indeterminacy; experimental economics; econometrics, with particular reference to inference and estimation. Probability in Economicsprovides a comprehensive overview of one of the most important issues in economics without relying on a mathematical or overly technical presentation. Its conclusion is that views of probability and uncertainty within contemporary economics are much too narrow, and that this severely limits their application to real circumstances and to normal patterns of choice.