Entrepreneurial Discovery and the Competitive Market Process

2000 ◽  
Keyword(s):  
Competitive Market ◽  
Market Process ◽  
Entrepreneurial Discovery

scholarly journals Foundations of Contemporary Economics: Israel Kirzner and the Function of Entrepreneurship

2021 ◽  
Vol 27 (1) ◽  
pp. 121-127
Keyword(s):  
Decision Making ◽  
Competitive Market ◽  
Austrian School ◽  
Market Process ◽  
Short Paper ◽  
Competitive Markets ◽  
Market Driven

Israel Kirzner has made profound contribu­tions to the theory of entrepreneurship. His con­siderable insights address the entrepreneurial function in the market process. Kirzner belongs to the Austrian school and hence assumes subjective decision-making, incomplete sets of knowledge for all subjects, and market disequi­libria. He ascribes to entrepreneurs the ability to detect through alertness market disequilibria in dynamic competitive markets. Entrepreneurs as arbitrageurs bring markets closer to equilib­ria even if in a dynamic competitive market an equilibrium remains a theoretical utopia. In this short paper, we outline the most important as­pects of Kirzner’s entrepreneurial approach and the function entrepreneurship has in market-driven processes.

Market Theory and the Price System

2015 ◽  
pp. 64-93
Author(s):  
Frederic Sautet
Keyword(s):  
Price System ◽  
Perfect Competition ◽  
Market Process ◽  
Market Theory ◽  
Ludwig Von Mises ◽  
Entrepreneurial Discovery ◽  
Classical Notion ◽  
System P ◽  
The Difference ◽  
Von Mises

This chapter presents a narrative about the evolution of market theory, which can be divided into two lines of thinking: the genetic-causal and the instrumental-causal traditions. The difference between the two views became clear around 1920, when prices came to be considered as parameters. This evolution had wide-ranging implications, as it drove the entire corpus of perfect competition and rejected the classical notion of the market as a dynamic, entrepreneurial system. Ludwig von Mises and Friedrich Hayek criticized the instrumental-causal view of market theory, arguing that its focus on equilibrium precluded an explanation of the way the market process unfolds. But it was Israel Kirzner who offered a theory of entrepreneurial discovery based on the alertness to hitherto unnoticed profit opportunities. It is argued that Kirzner’s market theory is the most accomplished theory of its kind in the genetic-causal tradition.

Entrepreneurial discovery in property market processes

2018 ◽  
Vol 36 (3) ◽  
pp. 345-357 ◽  
Author(s):  
Alirat Olayinka Agboola
Keyword(s):  
Design Methodology ◽  
Economic Thought ◽  
Austrian Economics ◽  
Market Process ◽  
Property Market ◽  
Basic Principles ◽  
Content Type ◽  
Philosophical Orientation ◽  
Entrepreneurial Discovery ◽  
Austrian Tradition

Purpose This purpose of this paper is to introduce property researchers to the principles of Austrian economics and to consider their methodological relevance and potential for understanding the dynamics of property market processes. Design/methodology/approach This paper sets out the basic principles of the Austrian economics thesis, including an outline of the entrepreneurial discovery approach to market processes, a core precept of the Austrian thesis. It then relates the core assumptions of the Austrian school to the workings of the property market. Findings It is argued that the driving force of property market process is provided by the entrepreneurial and profit-seeking speculative activities of human agents as they are confronted with incomplete information in an uncertain property market context. Thus, Austrian economics offers a sound and practical alternative theoretical approach to the study of property market, which places the market within its socio-economic context. Originality/value In-depth examination of the provisions, assumptions, philosophical orientation and limitations of the Austrian tradition of economic thought toward a better understanding of the workings of the property market.

Shortage of Skills in the Labor Market: Limited Supply, Lack of Demand, or False Signals from Employers?

2004 ◽  
pp. 76-94 ◽  
Author(s):  
V. Gimpelson
Keyword(s):  
Labor Market ◽  
Competitive Market ◽  
Skilled Workers ◽  
Industrial Enterprises ◽  
Russian Industry ◽  
General Skills ◽  
Limited Supply

The article discusses the issue of shortage of skills in the Russian industry. Using microdata from a survey of industrial enterprises, the author confirms that most of employers complain of difficulties in hiring and attaching skilled workers. In case of mass occupations, this shortage relates mostly to low efficient enterprises, which are unable or unwilling to pay competitive market going wage. More efficient and better paying firms are less likely to face shortage of general skills on the labor market but may face limited supply of specific skills.

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