Flexibility, Profitability and Survival in an (Objective) Model of Knightian Uncertainty
نویسنده
چکیده
This paper explores the relationship between a firm’s investments in ‘capability building’, and its prospects for survival. The analysis is carried out using a model of Knightian uncertainty which differs from the standard ‘subjective probability’ approaches in a number of fundamental respects. ∗ Walras-Bowley Lecture, Econometric Society, 2004. This lecture was subsequently presented at the UCL Conference in honour of Ken Binmore; I am grateful for comments received on that occasion. My thanks are also due to Ken Binmore, Adam Brandenburger, Andrea Prat and Michele Piccione for their very helpful comments on a preliminary draft.
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