G. L. S. SHACKLE. Uncertainty in Economics and Other Reflections. Pp. xiv, 267. New York: Cambridge University Press, 1955. $4.75

• Author: Henry William Spiegel
• DOI: 10.1177/000271625630400135
• Published date: 01 March 1956
• Date: 01 March 1956
• Subject Matter: Articles

159
with profit by students of society other
Professor Shackle, a British economist of
than economists. Except for some of the
originality and subtlety, has assembled here
most closely reasoned chapters in the last
a number of essays that were published
third of the book dealing with equilibrium
before in journals and elsewhere during the
theory, the general thesis is set forth so
period from 1939 to 1953. Much of the
clearly that the argument can be followed
content of the volume is integrated by its
by those who have had a minimum of train-
pervasive emphasis on that aspect of the
ing in economic theory.
theory of the firm which served as the cen-
It is the author’s contention that all
tral theme of Professor Shackle’s earlier
current theories concerning competition are
book, Expectation in Economics, first pub-
inadequate because they make no room for
lished in 1949. It was in this volume that
quality competition which is so prevalent
Professor Shackle developed a new and in-
a part of present market conditions. He
genious theory of expectations, which since
grants that theory must take cognizance of
then has been widely discussed in the jour-
quantitative factors, such as cost and out-
nal literature. Shackle is dissatisfied with
put, but it is Abbott’s thesis that qualitative
the traditional theory of expectations,
factors must also be included, not as a sub-
which bases the entrepreneur’s decision
stitute for price theory, but as an addition,
upon a probability distribution. He vis-
in order to develop an all-inclusive analysis
ualizes the relevant decisions as unique and
of a private enterprise economy. He points
crucial, and therefore beyond the applica-
out that entrepreneurial activity consists
bility of the probability calculus. Instead,
not only of production methods, a grasp of
in Shackle’s model the entrepreneur con-
cost, output, and price, but also an ability
centrates his attention upon two possible
to satisfy wants of buyers, as...