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.

Hamouda, Omar; Rowley, Robin

1. Introduction 2. Varieties of Probability 3. Expected Utility 4. Rationality and Conditional Expectations 5. Ignorance, Surprise and Vagueness 6. Experiments, Dynamics, and Cognitive Illusions 7. Evidence, Support, and Beliefs 8. Economics 9. Concluding Remarks and Overview