The state-contingent approach to production and uncertainty

John C. Quiggin · Robert G. Chambers

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Decision-Making and Behavioral Economics Economic Theory and Institutions Economic theories and models

Abstract

The central claim of this paper is that the state-contingent approach provides the best way to think about all problems in the economics of uncertainty, including problems of consumer choice, the theory of the firm, and principal–agent relationships. This claim is illustrated by recent developments in, and applications of, the state-contingent approach.

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