Bewley, Truman F. - Cowles Foundation for Research in Economics, Yale University - 1989
Stimulated by Frank Knight's work, "Risk, Uncertainty and Profit," I present a theory of innovation based on what I … term Knightian decision theory. This theory includes a concept of uncertainty aversion, a behavioral property that makes … individual investors with unusually low levels of uncertainty aversion. Also, it should be difficult to innovate new markets for …