Bücher der Reihe Theory and Decision Library B

The death of Professor K. C. Sreedharan Pillai on June 5, 1985 was a heavy loss to many statisticians all around the world. This volume is dedicated to his memory in recog­ nition of his many contributions in multivariate statis­ tical analysis. It brings together eminent statisticians Working in multivariate analysis from around the world. The research and expository papers cover a cross-section of recent developments in the field. This volume is especially useful to researchers and to those who want to keep abreast of the latest directions in multivariate statistical analysis. I am grateful to the authors from so many different countries and research institutions who contributed to this volume. I wish to express my appreciation to all those who have reviewed the papers. The list of people include Professors T. C. Chang, So-Hsiang Chou, Dipak K. Dey, Peter Hall, Yu-Sheng Hsu, J. D. Knoke, W. J. Krzanowski, Edsel Pena, Bimal K. Sinha, Dennis L. Young, Drs. K. Krishnamoorthy, D. K. Nagar, and Messrs. Alphonse Amey, Chi-Chin Chao and Samuel Ofori-Nyarko. I wish to thank Professors Shanti S. Gupta and James 0. Berger for their keen interest and encouragement. Thanks are also due to Cynthia Patterson for her help and Reidel Publishing Com~any for their cooperation in bringing this volume out.

Normative decision theory addresses itself to the question of how people ought to make decisions in various types of situations, if they wish to be regarded (or to regard themselves) as 'rational'. Normative decision theory is much more formalized than descriptive theory.

Eighteen papers by distinguished economists, management scientists, and statisticians shed new light on phenomena such as the Allais and St. Petersburg paradoxes, the equity premium puzzle, the demand for insurance, the valuation of public health and safety, and environmental goods.

As desired, the infonnation demand correspondence is single valued at equilibrium prices. P (F *), almost every a E A demands a unique combined infonnation structure (although traders may be indifferent among partial infonnation sales from different information allocations, etc.

But we know precious little about human reasoning processes, learning mechanisms and the like, and in particular about reasoning with limited, imprecise knowledge. In a sense, intelligent systems are machines which use the most general form of human knowledge together with human reasoning capability to reach decisions.

Non-Additive Measure and Integral collects the results of scattered and often isolated approaches to non-additive measures and their integrals which originate in pure mathematics, potential theory, statistics, game theory, economic decision theory and other fields of application.

Models and Experiments in Risk and Rationality presents original contributions to the areas of individual choice, experimental economics, operations and analysis, multiple criteria decision making, market uncertainty, game theory and social choice.

Econometrics as an applied discipline attempts to use information in a most efficient manner, yet the information theory and entropy approach developed by Shannon and others has not played much of a role in applied econometrics.