ABSTRACT

A theme in Chapters two and three was uncertainty and risk. For instance, in Chapter two I talked about Anna not knowing whether she would prefer the Nutty breakfast cereal or the Honey cereal. In Chapter three I talked about Alan deciding whether or not to fully insure his car without knowing whether his car would be stolen. New information should remove some of this uncertainty. For example, if Anna tastes the breakfast cereals, or Alan ¿ nds out the number of cars stolen in his area in recent years, then they should be able to make more informed decisions. This looks like a good thing.