Dipendra Sinha
Ashgate
Hardback
176
2001
This book breathes new life into the discussion of Knight by showing that uncertainty broadens the conception of economic welfare, and that a new cost analysis holds the key to unlocking the rich treasures of the Knightian corpus. Indeed, this new conception of economic welfare and cost form an alternative analysis of imperfect competition which has generally been overlooked by the economics profession. The book shows that Knightian uncertainty has an impact on the standard notion of economic welfare, it develops Knight's suggestion that uncertainty-control costs can be reduced, arguing that the large firm enjoys economic rent from utilizing its dominant vantage point in the market. The author demonstrates that while Knight provides the intellectual stimulus which propelled Chamberlin's thesis of monopolistic competition, Chamberlin uses a very abstract form of uncertainty in his analysis.
Ashgate
Hardback
176
2001
This book breathes new life into the discussion of Knight by showing that uncertainty broadens the conception of economic welfare, and that a new cost analysis holds the key to unlocking the rich treasures of the Knightian corpus. Indeed, this new conception of economic welfare and cost form an alternative analysis of imperfect competition which has generally been overlooked by the economics profession. The book shows that Knightian uncertainty has an impact on the standard notion of economic welfare, it develops Knight's suggestion that uncertainty-control costs can be reduced, arguing that the large firm enjoys economic rent from utilizing its dominant vantage point in the market. The author demonstrates that while Knight provides the intellectual stimulus which propelled Chamberlin's thesis of monopolistic competition, Chamberlin uses a very abstract form of uncertainty in his analysis.