Risk and Uncertainty

Attitudes regarding risk and uncertainty are important to the economic activity. This is the reason why the purpose of this paper is to point out to the differences between the risk phenomenon, on the one hand and the probability and uncertainty, on the other hand. An event has greater impact when it turns impossibility into possibility more or less likely. A series of studies provides support for this principle in decision under both risk and uncertainty and shows that people are less sensitive to uncertainty than to risk. That's way this paper provides a simple conceptual framework for discussing about risk and uncertainty. Communicating about risk and uncertainty may be difficult because uncertainty is multi-dimensional and there are different practical and philosophical approaches to it.