The analytics of uncertainty and information There has been explosive progress in the economic theory of uncertainty and information in the past few decades. This subject is now taught not only in departments of economics but also in professional schools and programs oriented toward business government and administration and public policy. This book attempts to unify the subject matter in a simple accessible manner. Part I of the book focuses on the economics of uncertainty; Part II examines the economics of information. This revised and updated second edition places a greater focus on game theory. New topics include posted price markets mechanism design common value auctions and the one shot deviation principle for repeated games Acknowledgements Introduction Elements of decision under uncertainty Risk bearing: the optimum of the individual Comparative statics of the risk bearing optimum Market equilibrium under uncertainty Information and informational decisions Information and markets Strategic uncertainty and equilibrium concepts Informational asymmetry and contract design Competition and hidden knowledge Market institutions Long run relationships and the credibility of threats and promises Information aggregation transmission and acquisition