Theory of Consumer Demand
Topics Discussed
- Choice under risk and Uncertainty
- St. Peters berg Paradox
- Lotteries
- Simple Lottery
- Compound Lottery
- Reduced Lottery
- Preferences over Lotteries
- Expected Utility Theory
Topics Discussed
- Expected Utility Theory and Risk Aversion
- Certainty Equivalent and Risk Premium
- Arrow Pratt Measure of Risk Aversion
- Relative Risk Aversion
- How Absolute Risk Aversion Changes with Wealth
- How Relative Risk Aversion Changes with Wealth
- Risk Aversion and Insurance
Past Year Question Discussed
Q3, IES, 2013