Reconsidering Frank Knights Risk, Uncertainty, and Profit
By Ross B. Emmett
This article appeared in the Spring 2020 issue of The Independent Review.
Published in 1921 to little acclaim, Knights brilliant treatise of microeconomic theory, Risk, Uncertainty, and Profit, didnt find enthusiastic readers until 1929, when Lionel Robbins began teaching the book at the London School of Economics. Knight translated classical liberalisms appreciation for market exchange into neoclassical theory and demonstrated that the entrepreneurial response to uncertainty is the key to understanding profit.