Cost, Uncertainty and Welfare

Download or read book Cost, Uncertainty and Welfare written by Stephan John Nash and published by Routledge. This book was released on 2018-12-17 with total page 195 pages. Available in PDF, EPUB and Kindle. Book excerpt: First published in 1998. This work contributes to 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 Knightian corpus. 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.