Professor Knight starts with a system in which there
IS no Uncertainty
“ acting as individuals under absolute freedom but
Without collusion men are supposed to have organised
economic life with the primary and secondary division
of labour, the use of capital, etc., developed to the point
familiar in present—day America. The principal fact
which calls for the exercise of the imagination is the
internal organisation of the productive groups or establish-
ments. With uncertainty entirely absent, every individual
being in possession of perfect knowledge of the situation,
there would be no occasion for anything of the nature
of responsible management or control of productive
activity. Even marketing transactions in any realistic
sense would not be found. The flow of raw materials
and productive services to the consumer would be entirely
automatic.”‘