Chamberlin E H

Chamberlin E H

Chamberlin, E. H. See Economic Thought.

Chance, in economic theory, means probability. Decisions made in conditions of uncertainty have been an important object of study in economics. Uncertainty can be treated by assuming that chances or probabilities of particular events are weighed up, that is, in the process of decision a future event is assigned a rough mathematical probability and the course of action is influenced by it. A different view was taken by Professor G L. S. Shackle, who analysed uncer-tainty as 'potential surprise'. In this analysis it is not assumed that the chance of a particular outcome is weighted according to its (approximate) mathematical probability.

In a more general sense, taking business chances or risks which are not insurable may be regarded as the essence of the entrepreneurial function and the reason why realized profits may be higher or lower than the expected rate of return on the capital used in the enterprise.

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Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk site is therefore not a final statement of economic doctrine.

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