Machine generated contents note: 1.Introduction -- 1.1.Focus of the book -- 1.2.Basic objectives -- 1.3.Content and structure -- 1.4.Some advice -- pt. I Individual decision making under risk -- 2.Risk and preferences -- 2.1.Historical antecedents -- 2.2.Expected utility theory -- 2.3.Alternative decision criteria -- 3.Risk aversion -- 3.1.Marschak-Machina triangle -- 3.2.Contingent claims -- 3.3.Measures of risk aversion -- 3.4.Slope of risk aversion -- 4.Applications -- 4.1.Portfolio choice -- 4.2.The demand for insurance -- 4.3.Precautionary savings -- 4.4.Theory of production under risk -- pt. II Risk sharing environments -- 5.Perfect information -- 5.1.The contract curve -- 5.2.Constant proportional risk sharing -- 5.3.Increases in aggregate wealth -- 6.Adverse selection -- 6.1.Preliminary comments -- 6.2.Adverse selection without risk -- 6.3.Principal-agent setting -- 7.Moral hazard -- 7.1.Perfect competition -- 7.2.A monopolistic principal -- pt. III Appendices --

Contents note continued: A.Mathematical toolkit -- A.1.The implicit function theorem -- A.2.Concavity and convexity -- A.3.Kuhn-Tucker optimisation -- A.4.Probability and lotteries -- B.A primer on consumer theory -- B.1.The basic microeconomic problem -- B.2.Utility maximisation under certainty.