No Free Lunch: Economics for a Fallen World: Third Edition, Revised

Chapter Ten: It’s all About the Institutions! 226 DESIRED LEARNING OBJECTIVES At the conclusion of this chapter, the student should be able to... § § Explain the relationship between time, uncertainty, and knowledge § § Describe how past experiences shape our expectations of the future § § Recognize that all human action is based on a subjective evaluation of cause and effect (i.e., if I choose a given means, will it lead to an end that I desire?) § § Describe the pervasive nature of uncertainty in life and how that affects market processes § § Compare and contrast risk and uncertainty § § Identify how markets provide incentives to coordinate activities § § Summarize the difference between dispersed and centralized knowledge § § Define what institutions are and how they guide the market process