Wissenschaftliche LiteraturUncertaintyVWL

Decisions under Imperfect Information

The Ordering of Information Structures and Production under Endogenous Uncertainty

Schriftenreihe volkswirtschaftliche Forschungsergebnisse

Almost all economic activity takes place under uncertainty. The randomness may, for instance, relate to risky stock market returns, fluctuating exchange rates or uncertain product innovations. The major source of uncertainty in decision making is the limited and imperfect knowledge of the decision maker at that given point in time. The exposure to uncertainty…