Uncertainty, Evolution, and Economic Theory

  title={Uncertainty, Evolution, and Economic Theory},
  author={Armen Albert Alchian},
  journal={Journal of Political Economy},
  pages={211 - 221}
  • A. Alchian
  • Published 1950
  • Economics
  • Journal of Political Economy
A modification of economic analysis to incorporate incomplete information and uncertain foresight as axioms is suggested here. This approach dispenses with “profit maximization”; and it does not rely on the predictable, individual behavior that is usually assumed, as a first approximation, in standard textbook treatments. Despite these changes, the analytical concepts usually associated with such behavior are retained because they are not dependent upon such motivation or foresight. The… Expand
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