A theory of choice under uncertainty is proposed which removes the completeness assumption from the Anscombe-Aumann formulation of Savage's theory and introduces an inertia assumption. The inertia assumption is that there is such a thing as the status quo and an alternative is accepted only if...

Intro -- Contents -- Acknowledgments -- 1 Why Study General Equilibrium? -- 2 The General Equilibrium Model -- 2.1 Commodities -- 2.2 Allocations -- 2.3 Utility Functions -- 2.4 Economies -- 3 Economic Efficiency -- 3.1 Definition of Pareto Optimality -- 3.2 Existence of Pareto Optimal...

In this paper I attempt to reconcile the apparent definiteness of econometric practice with the vagueness of subjective probabilities assumed in Knightian decision theory. I argue that some standard uses of classical inference are Knightian in spirit, even though the formal justification of...

The theory of choice proposed in "Knightian Decision Theory, Part I" is here applied to intertemporal problems. An analogue of dynamic programming called maxmin programming is developed. Also, it is shown that detailed contingent planning may not be needed in order to achieve maximality, a...