Basili M., Fontini F. (2003).

A Non-Expected Glance at Markets: Financial Models and Knightian Uncertainty. In Basili M., Dimitri N., Gilboa I., Cognitive Processes and Rationality in Economics, pp. 15-29. Routledge.



The chapter discusses financial markets with Knightian uncertainty. The latter refers to situations in which uncertainty is not quantifiable by a single probability measure. It deals with model of behavior in financial markets inspired by intuition regarding cognitive processes that underlie trade choices.