Frank Knight on Risk, Uncertainty, and the Firm: a New Interpretation

Risk , uncertainty and prophet : The psychological insights

Economist Frank H. Knight (1885–1972) is commonly credited with defining the distinction between decisions under “risk” (known chance) and decisions under “uncertainty” (unmeasurable probability) in his 1921 book Risk, Uncertainty and Profit. A closer reading of Knight (1921) reveals a host of psychological insights beyond this risk-uncertainty distinction, many of which foreshadow revolutionar...

The Effect Of Salvage Market On Strategic Technology Choice And Capacity Investment Decision Of Firm Under Demand Uncertainty

بررسی انواع ریسک نوسانات نرخ ارز و شیو ه های مدیریت آن: مبانی نظری و مرور تجربیات کشورها

In the finance literature, the exchange rate fluctuations risk (ERFR) considered as one of the major systematically risks. Indeed uncertainty of Exchange rate fluctuations for each firm is deemed as the risk (uncertainty) that could affect on the firm's activities financial flows. So managing this risk is considered as one of the most important functions of financial managers of enterprises. Ac...

The Limits of Numerical Probability : Frank H . Knight and Ludwig Von Mises and the Frequency Interpretation Hans

1Interestingly, however influential Knight and Mises otherwise have been in shaping their respective schools, neither Knight nor Mises have been entirely successful in convincing their followers of this part of their doctrines. Similarly, while they were skeptical about the use of probability, Knight and Mises were also proponents of “a priori” economic theory, and in this regard, too, neither ...

Labor Supply, Self-insurance and Knightian Uncertainty

The focus of this paper is on the implications of income uncertainty for the optimal labor supply. The meaningful distinction between Knightian uncertainty, which is often attributed to Frank Knight (1921), and risk is allowed. Agents are both uncertainty averse and risk averse. The labor-leisure and the labor-leisure-saving choices are studied under Knightian uncertainty in one-period and two-...