This new text deals with topics that are at the core of microeconomic theory - the economics of uncertainty and the economics of games and decisions. It contains a chapter on non-expected utility theory and very up to date coverage of such topics as risk aversion, stochastic dominance and mean-variance utility theory as well as a number of chapters that discuss and illustrate the use of game theory in making decisions under uncertainty.
PART 1: ECONOMICS OF UNCERTAINTY - The Expected Utility Theory - Risk Aversion - The Insurance Market - Stochastic Dominance and Risk Comparisons - Non-Expected Utility Theories - Portfolio Analysis and the Mean-Variance Utility Theory - Efficient Contracts under Uncertainty: the Principal-Agent Theory - Collective Decisions under Uncertainty - PART 2: GAMES AND DECISIONS - An Introduction to the Theory of Games - Non-cooperative Game Theory - Selected Topics in Non-cooperative Game Theory - Games and Collective Decisions - Evolutions and Games - Games with Nature and the Role of Information in Decision-Making under Uncertainty