Underscoring the economic significance of the Knightian distinction between risk and uncertainty, Don Katzner forcefully challenges the continued dominance of the expected utility model based on subjective probability in macroeconomic analysis and offers in its place a simple yet elegant model of decision making inspired by the pioneering work of G.L.S. Shackle. In doing so, Katzner lends support to a research program to identify a more coherent and empirically grounded theory of decision making under uncertainty. Our paper makes three contributions (...) to this program. First, we argue that the appropriate choice of a model of individual behavior under uncertainty cannot be adjudicated merely on logical, a priori grounds, but must ultimately be based on consistency with observed behavior. There are many internally consistent models and their external conditions of validity hardly ever rely on inconceivable scenarios. Second, while Katzner’s model certainly provides a plausible foundation for understanding choice under uncertainty, we suggest that it is somewhat underdetermined. It requires further theoretical articulation to yield testable predictions which differentiate it from competing approaches. Third, we discuss recent experimental findings that may need to be addressed by any satisfactory theoretical account of decision making under uncertainty. (shrink)

:In response to Roemer's reformulation of the Marxian concept of exploitation in terms of comparative wealth distributions, Vrousalis treats economic exploitation as an explicitly relational phenomenon in which one party takes advantage of the other's economic vulnerability in order to extract a net benefit. This paper offers a critical assessment of Vrousalis's account, prompting a revised formulation that is analysed in the context of a matching and bargaining model. This analysis yields precise representations of Vrousalis's conditions of economic vulnerability and (...) economic exploitation and facilitates comparison to the alternative conceptions of Marx and Roemer. (shrink)