Risk, Uncertainty and Profit

Description

Frank H. Knight, one of the 20th century’s giants in the field of economics, has given us a landmark book in the history of economic theory. A classic in its field, it was listed in the 1998 Forbes reading list as elucidating between insurable risk and true uncertainty. In fact, that is the dominant theme of the book, developing the theory of “risk, uncertainty, and profit” from the common sense view of production. The writer is careful to state that the book is a study in “pure theory” focused on the entrepreneur as the central figure in a free enterprise system whose goal is profit. He was among the first economists to expound on the law of variable proportions in the theory of production.

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