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Endogenous Uncertainty |
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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. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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