The classic distinction between risk and uncertainty is a famous one yet its real implications are often ignored. This paper revisits Knight’s essay, particularly his intuitions about what is now known as behavioral economics. Knight’s approach is based on psychology, and tries to better understand people’s attitude towards uncertainty. Unfortunately, the Chicago School (which Knight co-founded) chose to ignore these insights.
CLIL theme: 3312 -- SCIENCES ÉCONOMIQUES -- Économie publique, économie du travail et inégalités
ISBN:978-2-406-14227-0
EAN:9782406142270
ISSN: 2554-9626
DOI: 10.48611/isbn.978-2-406-14227-0.p.0125
Publisher: Classiques Garnier
Online publication: 12-28-2022
Periodicity: Biannual
Language: English
Keyword: risk, uncertainty, history of economic thought, behavioral economics.