Skip to content

Differences Quote by Frank Knight

“Goods move in response to price differences from points of low to points of higher price, the movement tending to obliterate the price difference and come to rest.” quote by Frank Knight
Download Open image
“Goods move in response to price differences from points of low to points of higher price, the movement tending to obliterate the price difference and come to rest.”

Frank Knight

About This Quote

Source Treatise: “Risk, Uncertainty, and Profit” by Frank Knight, 1921

Prices adjust through trade, reducing differences until equilibrium is reached, eliminating profit opportunities.

In simple terms: Trade balances price differences.

Key Takeaway

Understand market dynamics.

Themes

economics trade equilibrium

Mood

analytical neutral

Type

economic theoretical

When to use this quote

  • business pricing
  • commodity markets
  • policy making
  • investment decisions

Key Concepts

price theory market efficiency

Questions to Reflect On

  • What factors prevent perfect price equalization?
  • How does speculation affect this process?
A Different Perspective

Markets may not fully correct due to frictions or information asymmetry.

4.6 out of 5 (10 ratings)

More by Frank Knight

Explore all 20 Frank Knight quotes

More Differences quotes

Browse all 8,110 Differences quotes