We don’t live in a world of certainty, but its exact opposite, so we must change the theory to account for the presence of the unknown in economic life. We have not been too successful at this, but the theory remains, and we will learn it.
The mainstream theory of how we deal with choice under [...]
This is the second part of the course, where we look at strategic behaviour under uncertainty. Lectures one, two, three, and four were all about establishing the theory of demand under certain conditions. We don’t live in a world of certainty, but its exact opposite, so we must change the theory to account for the [...]
Also tagged Black Swan, Black Swan: The Impact of the Highly Improbable, Games, Nassim Nicholas Taleb, Nassim Taleb, Research