Engineering Statistics Philosophy Bio. Conservation Biology Medicine Project Management Economics Security
Economics and Finance

Economists deal with inordinately complex systems - local, national or global economies. Our understanding is imperfect, and our data are incomplete. Info-gap theory is well suited to deal with modelling and managing economic uncertainties. Applications have been made to describing the behavior of economic agents, as well as to evaluating and formulating micro- and macro-economic decisions and policies.

  • Yakov Ben-Haim, 2010, Info-Gap Economics: An Operational Introduction, Palgrave. Description and endorsements. Order information at the publisher.

  • Yakov Ben-Haim, 2006, Info-gap Decision Theory: Decisions Under Severe Uncertainty, 2nd edition, Academic Press, London.
    Chapter 3: Robustness and Opportuneness.
    ... Section 3.2.7: Portfolio investment.
    ... Section 3.2.8: Monetary policy.
    ... Section 3.3: Production volume with uncertain costs.
    Chapter 9: Coherent Uncertainties and Consensus.
    ... Section 9.3: Principal-agent contract bidding.
    Chapter 11: Robust-Satisficing Behavior.
    ... Section 11.1: The Ellsberg paradox.
    ... Section 11.2: The Allais paradox.
    ... Section 11.3: Info-gap analysis of expected-utility risk aversion.
    ... Section 11.5: The equity premium puzzle: A solution.

  • Yakov Ben-Haim, 2009, Info-gap forecasting and the advantage of sub-optimal models, European Journal of Operational Research, 197: 203-213. pdf file. Click here for a link to EJOR.

  • Lior Davidovitch and Yakov Ben-Haim, Is your profiling strategy robust? Law, Probability and Risk, to appear. Abstract.

  • John K. Stranlund and Yakov Ben-Haim, 2008, Price-based vs. quantity-based environmental regulation under Knightian uncertainty: An info-gap robust satisficing perspective, Journal of Environmental Management, 87: 443-449. pdf preprint.

  • Yakov Ben-Haim, 2008, Info-gap economics: An overview. Presented in part at the Research Forum on "Risk and Uncertainty in Monetary Policy", Centre for Central Bank Studies, Bank of England, London, 9-11 June 2008. pdf preprint.

  • Lior Davidovitch and Yakov Ben-Haim, 2008, Profiling for crime reduction under severely uncertain elasticities. Working paper. pdf preprint.

  • Lior Davidovitch and Yakov Ben-Haim, 2010, Robust Satisficing Voting: Why are uncertain voters biased towards sincerity? Public Choice, vol.145, issue 1, pp.265--280. Abstract.

  • M.A. Burgman, B.A. Wintle, C.A. Thompson, A. Moilanen, M.C. Runge, and Yakov Ben-Haim, 2010, Reconciling uncertain costs and benefits in Bayes nets for invasive species management, Risk Analysis: An International Journal, vol.30, #2, pp.277-284. Preprint.

  • Bryan Beresford-Smith and Colin J. Thompson, 2009, An info-gap approach to managing portfolios of assets with uncertain returns, Journal of Risk Finance, vol. 10, #3, pp.277-287. Abstract.

  • Bryan Beresford-Smith and Colin J. Thompson, 2007, Managing credit risk with info-gap uncertainty, Journal of Risk Finance, vol. 8, #1, pp.24-34. Abstract.

  • Y. Ben-Haim, Akram, Q.F., and O. Eitrheim, 2007, Monetary policy under uncertainty: Min-max vs robust-satisficing strategies, Norges Bank Working Papers, ANO 2007/6

  • Akram, Q.F., Y. Ben-Haim, and O. Eitrheim, 2006, Managing uncertainty through robust-satisficing monetary policy. Working paper ANO 2006/10. Oslo: Norges Bank. pdf file on the Norges Bank website.

  • Ben-Haim, Yakov and Maria Demertzis    , 2008, Confidence in Monetary Policy, De Nederlandsche Bank Working Paper Series, No.192/2008. pdf file on DNB website.

  • D. Berleant, L. Andrieu, J.-P. Argaud, F. Barjon, M.-P. Cheong, M. Dancre, G. Sheble and C.-C. Teoh, 2008, Portfolio management under epistemic uncertainty using stochastic dominance and information-gap theory, International Journal of Approximate Reasoning, vol.49, issue #1, pp.101–116 pdf preprint.

Questions or comments on info-gap theory? Contact me at yakov@technion.ac.il

More References

  • Thomas Knoke, 2008, Mixed forests and finance - Methodological approaches, Ecological Economics, Volume 65, Issue 3, pp.590-601.

  • Patrick Hildebrandt and Thomas Knoke, 2009, Optimizing the shares of native tree species in forest plantations with biased financial parameters, Ecological Economics, vol.68, issue 11, pp. 2825-2833.

  • Kazem Zare, Mohsen Parsa Moghaddam and Mohammad Kazem Sheikh El Eslami, 2010,  Demand bidding construction for a large consumer through a hybrid IGDT-probability methodology, Energy, vol.35, pp.2999-3007. Abstract.

  • Kazem Zare, Antonio J. Conejo, Miguel Carrion, and Mohsen Parsa Moghaddam, 2010, Multi-market energy procurement for a large consumer using a risk-aversion procedure, Electric Power Systems Research, vol.80, pp.63-70. Abstract.

  • Kazem Zare, Mohsen Parsa Moghaddam,  and Mohammad Kazem Sheikh El Eslami, 2010, Electricity procurement for large consumers based on Information Gap Decision Theory, Energy Policy, vol. 38, pp,234-242. Abstract.
  • Zacksenhouse, M., R. Bogacz and P. Holmes, 2010, Robust versus optimal strategies for two-alternative forced choice tasks, Journal of Mathematical Psychology, vol. 54, pp.230-246. Abstract

  • M.-P. Cheong, D. Berleant, and G. B. Shebl'e,Information Gap Decision Theory as a tool for Strategic Bidding in Competitive Electricity Markets, 8th International Conference on Probabilistic Methods Applied to Power Systems, Iowa State University, Ames, lowa, September 12-16,2004.

  • Colin J. Thompson, Anthony J. Guttmann and Ben J.P. Thompson, 2008, Trading indicators with information-gap uncertainty, The Journal of Risk Finance, to appear.

  • Beresford-Smith, Bryan and Colin J. Thompson, 2007, Managing credit risk with info-gap uncertainty, The Journal of Risk Finance, vol.8, issue 1, pp.24-34.

  • Yakov Ben-Haim, 2007, Robust-satisficing and the probability of survival, De Nederlandsche Bank Working Paper Series, No.138. pdf file on DNB website. Extended version: pdf file.

  • Yakov Ben-Haim, 2005, Value at risk with info-gap uncertainty, Journal of Risk Finance, vol. 6, #5, pp.388-403.

  • Yakov Ben-Haim and Karsten Jeske, 2003, Home-bias in financial markets: Robust satisficing with info-gaps, Federal Reserve Bank of Atlanta, Working Paper Series, 2003-35, Dec. 2003, pdf file on the Federal Reserve Bank website. SSRN abstract and full paper at: http://ssrn.com/abstract=487585.

  • Yakov Ben-Haim, Info-gap robust-satisficing monetary policy: Modelling and managing ignorance, working paper.pdf file

  • Yakov Ben-Haim, The equity premium: A solution, working paper. pdf file

  • Yakov Ben-Haim, Info-gap demand theory, working paper. pdf file

  • Yakov Ben-Haim, Competitive markets with info-gaps. working paper. pdf file 

  •  Yakov Ben-Haim, Common knowledge, coherent uncertainties and consensus, working paper. pdf file