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 1 June 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… 
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