Frank Knight
Full Name and Common Aliases
Frank Hynman Knight was a prominent American economist known for his work on economic theory and methodology.
Birth and Death Dates
Knight was born on July 7, 1885, in McLean County, Illinois. He passed away on April 15, 1972.
Nationality and Profession(s)
Knight held dual citizenship of the United States and Canada. His profession spanned economics, philosophy, and law. He taught at several institutions, including the University of Chicago and Harvard University.
Early Life and Background
Born into a family of modest means, Knight's early life was marked by a strong interest in reading and writing. He developed his intellectual curiosity through self-study, eventually attending Illinois College before moving on to Cornell University for graduate school. His time at the University of Chicago had a significant impact on his academic pursuits.
Major Accomplishments
Knight made significant contributions to economic theory, particularly with regards to his work on uncertainty and its implications for economic decision-making. He introduced the concept of "risk" as distinct from uncertainty, arguing that risk is measurable while uncertainty is not. This distinction remains a cornerstone of modern economics.
Notable Works or Actions
Knight's most notable works include:
_Risk, Uncertainty and Profit_ (1921) - A seminal work on economic theory where he first introduced the concepts of risk and uncertainty.
_The Ethics of Competition_ (1935) - A critique of monopolies and a defense of competition as essential to economic freedom.
Impact and Legacy
Knight's ideas have had far-reaching impacts across various fields. His work in economic theory has shaped modern understandings of risk, uncertainty, and market behavior. Economists continue to draw upon his concepts, adapting them to contemporary issues.
Why They Are Widely Quoted or Remembered
Frank Knight is widely quoted and remembered for several reasons:
Pioneering Work: He introduced critical concepts that have become fundamental to modern economics.
Influence on Future Economists: His work has influenced generations of economists, including notable figures like Milton Friedman and Joseph Schumpeter.
* Interdisciplinary Approach: Knight's background in philosophy and law enriched his economic theories, making them more comprehensive.
Knight's intellectual contributions have left a lasting impact on the field of economics. His pioneering work continues to inspire new generations of scholars and professionals.
Quotes by Frank Knight
Always history is being made; opinions attitudes and institutions change, and there is evolution in the nature of capitalism.
The truth seems . . . to be that in the ultimate and essential problem the economic factor is relatively superficial and unimportant.
Market competition is the only form of organization which can afford a large measure of freedom to the individual.
Large scale collective bargaining . . . is merely a seductive name for bilateral monopoly, and means either adjudication of conflicts in terms of power, or deadlock and stoppage, usually injuring outside people more than the immediate parties to the dispute.
Knowledge is more a matter of learning than of the exercise of absolute judgment. Learning requires time, and in time the situation dealt with, as well as the learner, undergoes change.
Sociology isthescience of talk, and there is onlyone law in sociology. Bad talk drives out good.
The probability of the people in power being individuals who would dislike the possession and exercise of power is on a level with the probability that an extremely tender-hearted person would get the job of whipping-master in a slave plantation.
I have been....moved to wonder whether my job is a job or a racket, whether economists, and particularly economic theorists, may not be in the position that Cicero, citing Cato, ascribed to the augurs of Rome-that they should cover their faces or burst into laugher when they met on the street.