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Search and Knightian uncertainty

✍ Scribed by Kiyohiko G. Nishimura; Hiroyuki Ozaki


Book ID
113707502
Publisher
Elsevier Science
Year
2004
Tongue
English
Weight
391 KB
Volume
119
Category
Article
ISSN
0022-0531

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## Abstract This paper examines the effects of Knightian uncertainty on a commodity futures market within the Newbery‐Stiglitz framework. It is shown that Knightian traders act more conservatively. In a partial trade equilibrium, risk aversion and Knightian uncertainty have qualitatively similar ef