J.M. Keynes Versus F.H. Knight: Risk, Probability, and Uncertainty

Description

This book critically discusses and systematically compares J.M. Keynes and F. H. Knight, two giants in the history of economic thought. In 1921 they both published apparently similar books on risk, probability, and uncertainty. However, while Knight's contribution on risk and uncertainty is now well recognized, Keynes's work on probability and uncertainty has been somewhat ignored in the shadow of his more famous The General Theory of Employment, Interest and Money (1936). Focusing on an earlier yet equally important volume by Keynes, A Treatise on Probability (1921), this book sheds a light on his outstanding ideas and the lasting influence on his later works, including The General Theory. There are few books that systematically discuss Keynes and Knight, although there are remarkable comparisons between Keynes's concept of probability and uncertainty and Knight's distinction between a measurable risk and a non-measurable uncertainty. This timely book unifies Keynes and Knight into a new, comprehensive approach to a very complex human behavior Front Matter ....Pages i-xvi Front Matter ....Pages 1-1 How My Life and Work Have Been Influenced by J.M. Keynes and F.H. Knight: Introduction and Summary (Yasuhiro Sakai)....Pages 3-15 On the Economics of Risk and Uncertainty: A Historical Perspective (Yasuhiro Sakai)....Pages 17-37 J.M. Keynes on Probability Versus F.H. Knight on Uncertainty: Reflections on the Miracle Year of 1921 (Yasuhiro Sakai)....Pages 39-60 Daniel Ellsberg on J.M. Keynes and F.H. Knight: Risk, Ambiguity, and Uncertainty (Yasuhiro Sakai)....Pages 61-77 Front Matter ....Pages 79-79 Involuntary Unemployment Versus “Involuntary Employment”: J.M. Keynes and Beyond (Yasuhiro Sakai)....Pages 81-100 Frank H. Knight on Uncertainty and Profit: Manager Versus Entrepreneur (Yasuhiro Sakai)....Pages 101-113 Frank H. Knight on Market Thinking: Reflections on the Logic and Ethics of the Capitalist Economy (Yasuhiro Sakai)....Pages 115-137 An Application to Nuclear Power Generation: From Daniel Bernoulli to J.M. Keynes and F.H. Knight (Yasuhiro Sakai)....Pages 139-157