Risk vs. Uncertainty: Advising and Advocating in the New Paradigm

While listening to a Freakonomics podcast recently focusing on John Urschel’s abrupt decision to retire from the NFL., I was intrigued by the discussion of how we make decisions in the face of risk versus uncertainty. By way of explanation, the introduction to the piece asks how it is possible we have billionaires, especially given that markets are usually reasonably competitive – which would mean no one person could make billions and billions of dollars. Originally, economists surmised that the answer to this conundrum was that captains of industry, such as the Andrew Mellons of yore, were smart calculators...

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