economics Archives - EU Seguros
Main Economics Theorems

Main Economics Theorems

Advanced Economics Theorems Arrow’s Impossibility Theorem: states that it is impossible to design a fair and efficient voting system that satisfies certain basic criteria. Aumann’s Agreement Theorem: states that under certain conditions, two Bayesian...
What Is The Coase Theorem?

What Is The Coase Theorem?

“If you torture the Data for long enough, it will confess” – Ronald Coase The Coase theorem is a fundamental principle in the study of law and economics, and it has been applied to various practical issues such as pollution, congestion, and land use....
Sources of Error in Statistics

Sources of Error in Statistics

Let’s say you have 50 people in your classroom and ask all of them one by one if they like chocolate or not. 40 people said yes, so 40/50 = 80% of people like chocolate, and 20% don’t. What about the whole college campus, which has a total of 20,000...
Choice under uncertainty

Choice under uncertainty

Are you sure? Aaah. Dealing with uncertainty. Risk-management. That complicated jargon that only actuaries deal with. Here let’s keep it simple. Question:  “A risk-averse individual is offered a choice between a gamble that pays $1,000 with a probability...
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