Endogenous uncertainty


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Related to Endogenous uncertainty: Exogenous Uncertainty

Endogenous uncertainty

Describes factors within the control of the firm, such as a decision to reveal information about price or input costs. Converse of exogenous.

Endogenous Uncertainty

Uncertainty regarding a firm's state, or a financial situation that could be resolved if the firm would simply announce it. For example, speculative investing may increase prior to the release of an earnings statement, driving the stock price up or down because of the endogenous uncertainty stemming from the fact that the company has not yet released the statement. In other words, endogenous uncertainty is under the control of the company it regards. See also: Exogenous uncertainty.
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Furthermore, while a joint venture offshoring model is important when learning and developing new capabilities for dispelling endogenous uncertainty under conditions of exogenous uncertainty; firms have minimal control over the reduction of exogenous uncertainty.
QUADRANT IV: HIGH ENDOGENOUS UNCERTAINTY AND HIGH EXOGENOUS UNCERTAINTY
By bringing resources onsite client firms can reduce some of endogenous uncertainty (i.