Skip to content
Register Sign in Wishlist

Ignorance and Uncertainty

$32.00 USD

Part of Econometric Society Monographs

  • Date Published: December 2018
  • availability: This ISBN is for an eBook version which is distributed on our behalf by a third party.
  • format: Adobe eBook Reader
  • isbn: 9781108390118

$ 32.00 USD
Adobe eBook Reader

You will be taken to for this purchase
Buy eBook Add to wishlist

Other available formats:
Paperback, Hardback

Looking for an inspection copy?

This title is not currently available on inspection

Product filter button
About the Authors
  • Born of a belief that economic insights should not require much mathematical sophistication, this book proposes novel and parsimonious methods to incorporate ignorance and uncertainty into economic modeling, without complex mathematics. Economics has made great strides over the past several decades in modeling agents' decisions when they are incompletely informed, but many economists believe that there are aspects of these models that are less than satisfactory. Among the concerns are that ignorance is not captured well in most models, that agents' presumed cognitive ability is implausible, and that derived optimal behavior is sometimes driven by the fine details of the model rather than the underlying economics. Compte and Postlewaite lay out a tractable way to address these concerns, and to incorporate plausible limitations on agents' sophistication. A central aspect of the proposed methodology is to restrict the strategies assumed available to agents.

    • Proposes a new way to address common concerns regarding the role of ignorance and uncertainty in economic modeling
    • Offers insights into sophisticated methods of economic modeling without complicated mathematics
    • Combines original research with a review of the literature
    Read more

    Reviews & endorsements

    'This book provides a refreshing and thought-provoking examination of the standard Bayesian foundations of economic analysis. Anyone who reads it will find themselves thinking differently about economic models and economics. The discipline of economics will be all the richer if the book is regularly read and discussed, by economists and others.' Larry Samuelson, A. Douglas Melamed Professor of Economics, Yale University, Connecticut

    'We are in the midst of an era of confusion about what we are trying to accomplish in economic theory. In this book, two insightful economic theorists weigh in on the meaning of economic theory's basic concepts and models. Their comments, even when critical, are given in a spirit of devotion and love for economic theory.' Ariel Rubinstein, Tel Aviv University and New York University

    'This is an important book, by two world-leaders in economic theory. It not only provides new insights into longstanding problems, but will also change the way we think about economic modeling and so change how we develop economic theory in the future.' Paul Klemperer, Edgeworth Professor of Economics, University of Oxford

    'In this brilliant and path-breaking book, Compte and Postlewaite offer a new way of modeling agent reasoning in microeconomic theory, striking a balance between the demands of equilibrium analysis with 'perfect' rationality and the realities of human cognition. They do not focus on a particular anomaly while embracing the rest of the game-theoretical assumptions. Rather, they focus on plausible ways of reasoning for economic agents, allowing a distinction between the agents' and the modeler's world view. In doing so, Compte and Postlewaite provide a new language for modeling bounded rationality.' Itzhak Gilboa, Tel Aviv University and École des hautes études commerciales de Paris

    See more reviews

    Customer reviews

    Not yet reviewed

    Be the first to review

    Review was not posted due to profanity


    , create a review

    (If you're not , sign out)

    Please enter the right captcha value
    Please enter a star rating.
    Your review must be a minimum of 12 words.

    How do you rate this item?


    Product details

    • Date Published: December 2018
    • format: Adobe eBook Reader
    • isbn: 9781108390118
    • contains: 54 b/w illus.
    • availability: This ISBN is for an eBook version which is distributed on our behalf by a third party.
  • Table of Contents

    Part I. Modeling Challenges:
    1. Action space
    2. Ignorance and uncertainty
    3. Observations, perceptions and strategies
    4. Strategies and strategy restrictions
    5. Knowledge and beliefs
    Part II. Legends and Myths:
    6. Information aggregation
    7. Mechanism design
    8. Surplus extraction
    9. Folk theorems
    10. Comparative statics
    Part III. Applications:
    11. Auctions
    12. Learning
    13. Reputation
    14. Cooperation
    15. Influence
    16. Information aggregation in markets
    17. Bargaining
    18. Attrition
    19. Reputation
    20. Coordination
    21. Ambiguity and other complexity related aversions

  • Authors

    Olivier Compte, Paris School of Economics
    Olivier Compte is a Professor at the Paris School of Economics and École des Ponts ParisTech.

    Andrew Postlewaite, University of Pennsylvania
    Andrew Postlewaite is the Harry P. Kamen Professor of Economics and a Professor of Finance at the University of Pennsylvania.

Sign In

Please sign in to access your account


Not already registered? Create an account now. ×

Sorry, this resource is locked

Please register or sign in to request access. If you are having problems accessing these resources please email

Register Sign in
Please note that this file is password protected. You will be asked to input your password on the next screen.

» Proceed

You are now leaving the Cambridge University Press website. Your eBook purchase and download will be completed by our partner Please see the permission section of the catalogue page for details of the print & copy limits on our eBooks.

Continue ×

Continue ×

Continue ×

Find content that relates to you

Join us online

This site uses cookies to improve your experience. Read more Close

Are you sure you want to delete your account?

This cannot be undone.


Thank you for your feedback which will help us improve our service.

If you requested a response, we will make sure to get back to you shortly.

Please fill in the required fields in your feedback submission.