Notions of probability and uncertainty have been increasingly prominant in modern economics. This book considers the philosophical and practical difficulties inherent in integrating these concepts into realistic economic situations. It outlines and evaluates the major developments, indicating where further work is needed. This book addresses: * probability, utility and rationality within current economic thought and practice * concepts of ignorance and indeterminancy * experimental economics * econometrics, with particular reference inference and estimation.
Probability is a key concept in economics. This book adopts a critical attitude to the treatment of probability in most current economic modelling, whilst refraining from embracing chaos theory. Essential reading for the enquiring econometrician
