Cost benefit analysis is a way of helping you organize your tolts. But the pretence that we to know everything to a precise decimal point is what undermines, in the end, these attempts to construct the net benefit of a project. A valuet risk is a flawed measure. It's an attempt to possess the riskiness investment portfolio. And its its practitioners certainly recognize that it's imperfect. We would you e know, what's the alternative? That's our best measure. How do you react to that? John?
John Kay and Mervyn King talk about their book, Radical Uncertainty, with EconTalk host Russ Roberts. This is a wide-ranging discussion based on the book looking at rationality, decision-making under uncertainty, and the economists' view of the world.