Risk, Uncertainty and Profit

Why read it

• You will learn to separate risk, which can be measured, from uncertainty, which cannot
• You will see why profit would vanish in a perfectly competitive world with full knowledge, and why only true uncertainty leaves room for it
• You will know why change is a precondition for uncertainty: in a world that never changed, the future would be known

Who it is for

• An economics student meeting the theory of profit for the first time
• An entrepreneur curious why some decisions cannot be insured
• An investor trying to tell calculable risk from true unknowns

What the summary covers

1. The question of profit2 min
2. A benchmark without uncertainty5 min
3. Three ways of judging the future3 min
4. How enterprise meets uncertainty3 min
5. The entrepreneur and the residual5 min
6. Progress and capital3 min
7. Uncertainty and social choice4 min

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