Endogenous uncertainty


Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.
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.
Mentioned in ?
References in periodicals archive ?
QUADRANT IV: HIGH ENDOGENOUS UNCERTAINTY AND HIGH EXOGENOUS UNCERTAINTY
By bringing resources onsite client firms can reduce some of endogenous uncertainty (i.e., cultural uncertainty) and lower the level of endogenous uncertainty experienced.
After developing capabilities to deal with the endogenous uncertainty, client firms will choose another offshoring model (i.e., captive offshoring) depending on the exogenous uncertainty in the host country at that time.
Since this was one of the first offshore experiences of HealthCenter, endogenous uncertainty at this point was seen as high and uncontrollable.