Có lẽ một phần khó khăn nhất là quyết định những gì các giả định thích hợp cần được đối với chức năng sản xuất quyết định hạn chế công nghệ rm . '. s vấn đề kinh tế cơ bản của cạnh tranh . | 176 CHAPTER 7. GENERAL EQUILIBRIUM 2. Show that the excess demand functions for goods 1 2 can be written as n 1 A 2p1 2 pi 2 _ 2 P1 nA - P2 2p2 2 2 where n is the expression for profits found in Exercise . Show that in equilibrium P1 P2 ỵ 3 and hence show that the equilibrium price of good 1 in terms of good 3 is given by p1 A r3 2A 3. What is the ratio of the money incomes of workers and capitalists in equilibrium Chapter 8 Uncertainty and Risk The lottery is the one ray of hope in my otherwise unbearable life. - Homer Simpson. Introduction All of the economic analysis so far has been based on the assumption of a certain world. Where we have touched on the issue of time it can effectively be collapsed into the present through discounting. Now we explicitly change that by incorporating uncertainty into the microeconomic model. This also gives us an opportunity to think more about the issue of time. We deal with a specific perhaps rather narrow concept of uncertainty that is in a sense exogenous. It is some external ingredient that has an impact upon individual agents economic circumstances it affects their income their needs. and also upon the agents decisions it affects their consumption plans the pattern of their asset-holding. Although there are some radically new concepts to be introduced the analysis can be firmly based on the principles that we have already established particularly those used to give meaning to consumer choice. However the approach will take us on to more general issues by modelling uncertainty we can provide an insight into the definition of risk attitudes to risk and a precise concept of risk aversion. Consumption and uncertainty We begin by looking at the way in which elementary consumer theory can be extended to allow for the fact that the future is only imperfectly known. To fix ideas let us consider two examples of a simple consumer choice problem under uncertainty. 177 178 CHAPTER 8. UNCERTAINTY AND RISK Budget day Election
