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  • Photo du rédacteurHélène Dufour

Knightian Uncertainty

In 1921, Keynes and Knight stressed the distinction between uncertainty and risk. While risk involves calculable probabilities, uncertainty lacks a scientific basis for probabilities. Knightian uncertainty exists when outcomes can't be assigned probabilities. This poses challenges in decision-making and regulation, especially in scenarios like AI, urging caution for eliminating worst-case scenarios due to potential high costs and missed benefits.

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