16. Risk

132: Expected Utility This video reviews the expected utility theory initiated by von Neumann and Morgenstern.
130: Moral Hazard II This video shows that the theory by Arnott and Stiglitz contains only one point.
131: Moral Hazard III This video disproves the effort part of the A&S moral hazard theory.
129: Moral Hazard I This video shows that it is impossible to bring back the two-dimensional theory from a one-dimensional function.
133: Gambling I This video explains why people bet unfair games, offers stochastic explanation, and explains the St. Petersburg Paradox.
134: Gambling II This video shows how to avoid moral hazard in gambling.
135: Insurance This video shows how to avoid moral hazard in insurance.
128: Lemons This video reveals the peculiarity of Akerlof’s lemon theory.
136: Game #7 This video shows that neither the Maximin nor the Nash method can solve the Prisoner’s dilemma of competition.
289: IPO This video illustrates the rise of share price due to higher earning.
290: IPO II This video illustrates how a firm issues new shares during IPO.
291: IPO III This video proves that IPO proceeds must go to existing shareholders only.
323: Shavell I This video disproves the maximisation on expected utility.
324: Shavell II This video further disproves the maximisation on expected utility.
325: Shavell III This video discloses a blatant lie by Shavell.
326: Shavell IV This video proves that it is hard to lure worker to put more effort.
344: Tournament I This video shows the contradiction of Lazear and Rosen’s tournament theory.
345: Tournament II This video shows how tournament can discourage work.