Random distributions are not good things, because people are risk-averse, and this risk adversely affects their welfare. If you get too much price uncertainty, all kinds of long-term, mutually beneficial contracts can't be entered into. — Edward C. Prescott Copy Share Image
“Risk, as first articulated by the economist Frank H. Knight in 1921, is somethimg that you can put a price on…Uncertainty, on the other hand, is risk that is hard to measure.” — Nate Silver Copy Share Image
