This paper presents a personal view of the interaction between the analysis of choice under uncertainty and the … analysis of production under uncertainty. Interest in the foundations of the theory of choice under uncertainty was stimulated … by applications of expected utility theory such as the Sandmo model of production under uncertainty. This interest led to …

Standard tools for the analysis of economic problems involving uncertainty, including risk premiums, certainty … distance and benefit functions to characterize preferences relative to a given state-contingent vector of outcomes. The … distance and benefit functions are used to derive absolute and relative risk premiums and to characterize preferences …

division of knowledge, which we here extend to the consumer side of the economy. We distinguish between high-level preferences … and low-level preferences as nested systems of rules used to solve particular choice problems. We argue that agents, while … sovereign in high-level preferences, may often find it expedient to acquire, in a pseudo-market, the low-level preferences in …

This paper derives a no-trade theorem under Knightian uncertainty, which generalizes the theorem of Milgrom and Stokey … holds true as long as agents' preferences are dynamically consistent in the sense of Machina and Schmeidler (1991 …

to the case of multiple inputs. We show that their main result extends to this general case if and only if, for each firm … firms output is equal to the number of degrees of freedom in the firm's production technology. (c) 2006 Elsevier B.V. All …

I examine a situation where a firm chooses to locate a new factory in one of several jurisdictions. The value of the … that values it the most, but competition in itself is wasteful. I show that the expected total amount paid to the firm … that guarantees that the firm chooses the jurisdiction with the highest value for the factory, minimizes the total expected …