Frank Knight

Frank Knight was an American economist known for his foundational work in the field of risk and uncertainty. He distinguished between measurable risks, which can be quantified, and true uncertainty, where outcomes are unpredictable and not quantifiable. His key idea was that businesses often deal more with uncertainty than risk, influencing their decisions and strategies. Knight is also known for his contributions to the theory of profits, positing that entrepreneurs earn profits by bearing this uncertainty. His influential book, "Risk, Uncertainty, and Profit," published in 1921, remains a significant text in economics.