Risk, Uncertainty and Profit by Frank H 188 Knight

Risk, Uncertainty and Profit by Frank H 188 Knight

In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market: profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets. To explain this seeming paradox, Knight uncovers the distinction between calculable risk and essentially unknowable uncertainty. Knight argued that risk stems from repeated events, which therefore allow probabilities to be calculated and factored into decisions, as for instance insurers do. Uncertainty however, stems from events that are unpredictable and as such cannot be prepared against. According to Knight, it is the interplay between risk and uncertainty on the one hand and competition between incumbent and new entrepreneurs that accounts for the enormous variation in profitability across firms and, for the same firms, over time. His insights on the sources of profit have been instrumental in shaping modern economic theory and to the development of a useful understanding of probability. This New Edition has been typeset with modern techniques and contains a newly compiled Index of important topics. It has been painstakingly proofread to ensure that it is free from errors and that the content is faithful to the original. *Biography* Frank H. Knight (1885-1972) was a Professor of economics at the University of Chicago for most of his professional life. Considered one of the founding fathers of the intellectual current known as the Chicago School, Frank Knight had an enormous influence on economic theory and methodology and as a consequence also on the professional reach of modern economists. Knight was an editor of the pre-eminent Journal of Political Economy for over two decades, winner of half a dozen scholarly awards and honorary degrees.

FRANK H. KNIGHT (1885-1972) was a graduate of the University of Tennessee where he received a Bachelor of Science degree and a Master of Arts degree. He then pursued his doctorate in Economics at Cornell University, studying under Professors Alvin Johnson and Allyn Young. This was where he completed his dissertation Cost, Value and Profit in 1916 which formed the basis of his later book Risk, Uncertainty, and Profit. Knight then joined the faculty of the University of Chicago where he eventually became chair of the Department of Economics. In this role, Knight was an early leader of what came to be known as the first Chicago school of economics. He was a prolific writer and had a great deal of influence on a generation of economists.

SKU	Unavailable
ISBN 13	9781014745354
ISBN 10	1014745357
Title	Risk, Uncertainty and Profit
Author	Frank H 188 Knight
Condition	Unavailable
Binding Type	Paperback
Publisher	Legare Street Press
Year published	2021-09-09
Number of pages	410
Cover note	Book picture is for illustrative purposes only, actual binding, cover or edition may vary.