Arbeitspapier

Uncertainty and the limits of markets

The article considers the place of the neoclassical equilibrium model as the basis for current views of markets as fair, efficient, or both. It also points to three threats the model poses for democracy and justice: it ignores the problem of inequality, it suppresses the socio-economic significance of uncertainty, and it conceals its own tradeoff between certainty and equality. Instead, the article lays out Frank Knight's critical assessment of real markets, which rely on the tacit agreement between a handful of "daring" entrepreneurs and the "risk-averse" masses to bear the uncertainties of business-life in return for a substantially larger share of its direction and rewards. Knight's influential conclusion, that this agreement mandates a nonmeritocratic social inequality and substantively divides humanity into leaders and followers, should be critically examined.

Sprache
Englisch

Erschienen in
Series: CHOPE Working Paper ; No. 2020-08

Klassifikation
Wirtschaft
Thema
Frank Knight
inequality
uncertainty

Ereignis
Geistige Schöpfung
(wer)
Hirsch, Roni
Ereignis
Veröffentlichung
(wer)
Duke University, Center for the History of Political Economy (CHOPE)
(wo)
Durham, NC
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hirsch, Roni
  • Duke University, Center for the History of Political Economy (CHOPE)

Entstanden

  • 2020

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