This article should really cite the work by Sara’s Sarasvathy. She is probably the first to use the term “Knightian Uncertainty” as far as I am aware. Her wor

This article should really cite the work by Sara’s Sarasvathy. She is probably the first to use the term “Knightian Uncertainty” as far as I am aware. Her work used the term to address how classical business strategy techniques are fundamentally inapplicable to the decisions faced by entrepreneurs -because mathematical models simply don’t encompass all possible outcomes. Her theory is generally discussed under the name “theory of effectuation” and draws on qualitative interviews with successful entrepreneurs. Interestingly, she was the last graduate student of Herbert Simon who is known for ‘bounded rationality’ and ‘satisficing’ I would quibble slightly with MITs examples, and there typical over hyping of their own scholars work. It’s not that the models are incalculable…they are operfectly calculable that’s the problem. The models themselves are problematic because they make presumptions about decision making processes that rely on knowable probabilities. You can’t calculate the risk or uncertainty of some event if you can’t assign a probability distribution to it.