Frank Knight’s “Risk, Uncertainty and Profit” 100 Years Later

Source: Cobden Centre
by John Phelan

“In Risk, Uncertainty and Profit, published in 1921, economist Frank Knight (1885-1972) sought to solve a riddle: according to economic theory, under conditions of perfect competition profits in excess of the normal return on capital should be competed away. Yet, such profits were commonplace in the actual American economy. How could theory be reconciled with reality?” (01/07/22)