Renewing Knightian Uncertainty: Problems and Possibilities
18 Pages Posted: 22 Jun 2021 Last revised: 14 Sep 2021
Date Written: June 15, 2021
Frank Knight distinguished between 'uncertainty' and 'risk' to specify the true nature of 'profit’, but his specification never caught on and I do not see realistic possibilities for renewing research in this direction. Knight also used uncertainty to specify the distinctive role of the entrepreneur (not just entrepreneurial profit). Using uncertainty along similar lines – and adapting Knight’s proposed (and now forgotten) “middle way” methodology -- may offer slightly more promising prospects. I evaluate these prospects.
Keywords: Knightian uncertainty, entrepreneurship, economic methodology, economic history
JEL Classification: B0,M0,O0
Suggested Citation: Suggested Citation