Assignment question:

"Deep and wide-ranging disaggregation [deregulation] has left households with the responsibility for making important and technically complex micro-financial decisions involving risk--such as detailed asset allocation and estimates of the optimal level of life- cycle saving for retirement-- decisions that they had not had to make in the past, are not trained to make in the present, and are unlikely to execute efficiently in the future [...]" (Merton, 2000, p.4)

Critically assess this claim. Elaborate on this point while taking into consideration the distinction between rationality under risk, weak uncertainty, and strong uncertainty.

Using Havard Referencing