Econ434notes6a - dice or cards or fuzzy[actuarial risk – things for which we have some notion of historical occurrence 2 Future events range from

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Richard Cantillon 1. Entrepreneur – what do they do? a. Innovate i. Better technology ii. New products iii. Take risks b. Risk and uncertainty i. Risk is less important than uncertainty in generating profits for the entrepreneur per Frank Knight, Risk, Uncertainty, and Profit . 1. Risk involves known mathematical probabilities [e.g.,
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Unformatted text preview: dice or cards, or fuzzy [actuarial] risk – things for which we have some notion of historical occurrence. 2. Future events range from things about which we are reasonably certain to virtual wild guesses. 2. Subjective theory of price (demand side theory)...
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This note was uploaded on 01/12/2010 for the course ECON 434 taught by Professor Byrns during the Spring '09 term at UNC.

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