What exactly is “Knightian Uncertainty” and in what way is it different from “conventional” uncertainty?
Answer-65: To answer this question I shall have to take a closer look at the concept of uncertainty and its affiliated terminology. It is important to make clear from the outset, though, that the epithet “Knightian” is no more than a stand-in for “Severe”. So the constant recitation of the term “Knightian Uncertainty” (in the Info-Gap literature) to highlight the severity of the uncertainty has the effect of turning it into a mere buzzword. The epithet “Knightian” is due to the economist Frank Hyneman Knight (1885-1972) — one of the founders of the so-called “Chicago school of economics” — who is credited with the distinction between “risk” and “uncertainty”.
