On Poorly Named Chapters

Over at the blog Reading Mas-Colell, a thorough discussion of the distinction between risk (situations with probabilistically measurable outcomes) and uncertainty (situations in which the likelihood of outcomes cannot be properly probabilistically assessed), the triumph of a risk-based approach over an uncertainty-based approach in most schools of thought and business analysis, and the lack of attention paid to this important distinction in one of the most widely-used textbooks in economic Ph.D. programs. Long and technical, but an excellent read, and as non-technical an analysis of MWG as I’ve ever encountered.

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