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Date: | Fri Mar 31 17:18:55 2006 |
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----------------- HES POSTING -----------------
Well, I can say for certain that Frank Knight uses the assumption
of perfect knowledge in Risk, Uncertainty and Profit (1921). In fact,
the entire text is predicated upon the centrality of that assumption
to economic knowledge. I will give you at least one quotation from
that text tomorrow when I get to my office.
However, since Knight's argument is both a strong statement of
neoclassical theory and a critique of it, I'm not sure which side of
Larry's divide he should fall!
Also, chapter 7 (I believe that's the chapter number) of Risk,
Uncertainty, and Profit provides a long list of "minor" assumptions
that are necessary in order for a general equilibrium to occur.
George Stigler once remarked that the list was bizarre, but I have
always liked it.
Ross Emmett
Augustana University College
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