The Economic Analysis of Random Events : Palgrave Macmillan : 9783031530777 : 3031530772 : 04 Jul 2024 : This book investigates applications of probability theory to random events from an economic standpoint and considers how economics can deal with uncertainty in today's world. As such the nature of chance and probability will be discussed with examples taken from the theoretical literature in probability and the history of economic thought, as well as real-life events. Chapters cover the nature of randomness and the element of chance, the concepts of both hidden costs and opportunity costs, the economic effect of human action, the randomness of economic events, random walk hypotheses and observable and unobservable phenomena. It situates the discussion in John Maynard Keynes' and Ronald Fisher's seminal works on probability, as well as introducing key tenets of probability theory and how these can be applied to economic events. The book considers the relationship between artificial i