RICHARD WATT is Associate Professor of Economics in the Department of Economics and Finance at the University of Canterbury, New Zealand.

• IntroductionI INDIVIDUAL DECISION MAKING UNDER RISKRisk and preferencesRisk aversionApplicationsII RISK SHARING ENVIRONMENTSPerfect informationAdverse selectionMoral hazardAPPENDICESMathematical toolkitA primer on consumer theory.

This book aims to provide a one-semester course in the microeconomics of risk and information for, it seems, final-year undergraduate economics or finance students. It is structured very simply and appealingly, going from chapters on risk, preferences and risk aversion through a chapter on four applications to concluding chapters on adverse selection and moral hazard, the ‘information’ part of the course.

RICHARD WATT is Associate Professor of Economics in the Department of Economics and Finance at the University of Canterbury, New Zealand.

• IntroductionI INDIVIDUAL DECISION MAKING UNDER RISKRisk and preferencesRisk aversionApplicationsII RISK SHARING ENVIRONMENTSPerfect informationAdverse selectionMoral hazardAPPENDICESMathematical toolkitA primer on consumer theory.

This book aims to provide a one-semester course in the microeconomics of risk and information for, it seems, final-year undergraduate economics or finance students. It is structured very simply and appealingly, going from chapters on risk, preferences and risk aversion through a chapter on four applications to concluding chapters on adverse selection and moral hazard, the ‘information’ part of the course.

RICHARD WATT is Associate Professor of Economics in the Department of Economics and Finance at the University of Canterbury, New Zealand.

• IntroductionI INDIVIDUAL DECISION MAKING UNDER RISKRisk and preferencesRisk aversionApplicationsII RISK SHARING ENVIRONMENTSPerfect informationAdverse selectionMoral hazardAPPENDICESMathematical toolkitA primer on consumer theory.

This book aims to provide a one-semester course in the microeconomics of risk and information for, it seems, final-year undergraduate economics or finance students. It is structured very simply and appealingly, going from chapters on risk, preferences and risk aversion through a chapter on four applications to concluding chapters on adverse selection and moral hazard, the ‘information’ part of the course.