Probability and Information

Yaglom A.M., Yaglom I.M.902771522X, 9789027715227

The present book, designed for a wide circle of readers (familiarity with mathematics up to high school level suffices for comprehension of all of its contents), makes, of course, no claim to serve even as an elementary introduction to the scientific information theory. We can give here only a preliminary idea of important practical applications of this theory. Similarly, it shall not be possible to deal here with the deeper purely mathematical problems connected with the information theory. The main aim of the authors is much simpler : it consists of acquainting the reader with certain, though not complex but highly important, new mathematical ideas, and leading him through these ideas to an understanding of one of the possible means of employing mathematical methods of modern engineering.

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Table of contents :
Front Matter….Pages i-xii
Front Matter….Pages 1-1
Valuing Health and Safety: Some Economic and Psychological Issues….Pages 3-32
Improving Efficiency in Environmental Enforcement….Pages 33-52
Valuation of Environmental Goods….Pages 53-64
Stochastic Trees and Medical Decision Making….Pages 65-74
Manipulation of Emission Permit Markets….Pages 75-86
Front Matter….Pages 87-87
Allais Theory Offers Explanation for Equity Premium Puzzle….Pages 89-108
Generalized Expected Utility and the Demand for Insurance….Pages 109-114
The Derivation of Generalized Expected Utility Expansions….Pages 115-122
Necessary Conditions for Efficient Multiple-Bid Auctions….Pages 123-143
Balanced Equilibrium….Pages 145-161
Mixed Extensions of Games and the Saint Petersburg Paradox….Pages 163-171
Consumption with Fluctuations in Preference….Pages 173-192
Front Matter….Pages 193-193
Dynamically Consistent Preferences, Quadratic Beliefs, and Choice Under Uncertainty….Pages 195-205
Induced Preferences and Decision-Making under Risk and Uncertainty….Pages 207-217
On Socks, Ties and Extended Outcomes….Pages 219-226
Hierarchies and the Self-Control of Risk Attitude….Pages 227-243
Allais Phenomena and Completeness of Preferences….Pages 245-256
Representing Preference Relations with Nontransitive Indifference by a Single Real-Valued Function….Pages 257-262
Back Matter….Pages 263-268