An asset for which the pay-off depends upon future events that are not under the control of the company holding the asset.
The ability to predict future events correctly, assuming no uncertainty.
The concept of states of the world in economics, encompassing the possible future outcomes for an economy under uncertainty.
A situation where a decision-maker knows possible events but not their exact probabilities.
A measure used in economics to denote the anticipated value of an uncertain situation in relation to wealth.
A visual representation where the past shows actual values and the future presents a range of forecast values, illustrating the uncertainty in economic forecasts.
A decision rule in decision theory for minimizing the maximum potential regret across various actions under uncertainty.
An overview of partial adjustment in economic decision-making, including its rationale and implications.
The motive to hold money to provide for the unexpected. See also demand for money.
A form of uncertainty where, while the actual outcome of an action is not known, probabilities can be assigned to each of the possible outcomes.
A comprehensive exploration of the economic concept of uncertainty.
