| Summary: | The article discusses the economic role of anticipated receipts to non contractual factors. The economic role of anticipated receipts to non-contractual factors, precisely the same as the role of anticipated receipts of contractual factors, is to guide allocation of these resources. Ultimate decision-making may best be regarded as the function of dealing with uncertainty. Profit is a function of anticipations and can be altered. Anticipations are significant as they are reflected in and expressed in supply and demand functions. This is the mechanism through which a change in expectations results in a change in economic activity with consequent changes in the pattern of prices, returns and profits. A major service of the uncertainty theory is that it guides analysis away from the directions indicated by alternative theories of profit, which because they are not consistent with basic economic principles lead in paths ending in ambiguity or error.
|
|---|