Political decentralisation
By itself, the rule of law, even in Hayek's thoroughgoing version, does not secure a system of personal liberty and vigorous entrepreneurship. The rule of law, and the formal requirements it imposes certainty, generality and equality , does not guarantee an effective bulwark against the discretionary power of government. It is a mistake to present the rule of law as a sufficient condition for individual freedom and the unimpeded operation of spontaneous market forces, when it is possibly only a...
Kirzners theory of entrepreneurial discovery
In common with much of mainstream economics, Hayek's analysis suffers from one serious problem it assumes that all market participants are price-takers. The question remains how are prices and other elements of the marketing mix determined and how do they move towards their equilibrium levels Kirzner bridges the theoretical deficit left by Hayek by providing a theory of entrepreneurial price adjustment that develops the work of Mises. In Kirzner's theory, the price-adjuster is the entrepreneur....
Characteristics of entrepreneurial alertness
Boldness, impulse, hunch are the raw materials of entrepreneurial success and failure . It is important to examine the unique characteristics of entrepreneurial alertness if we are to appreciate this elusive concept and to understand the types of institutions and economic policies that are likely to be conducive to it. A general point is that entrepreneurship is not a factor of production, not even a special kind of productive factor Kirzner 1979 180-181 . The characteristics of entrepreneurial...
The theory of entrepreneurial discovery
The theory of entrepreneurial discovery is the most widely accepted conception of entrepreneurship among market-process theorists. In line with the broader research programme within which it is embedded, this approach is distinguished by its focus upon the nature of competitive processes, market disequilibria, the role of knowledge, expectations and learning in the operation of markets, the nature and significance of entrepreneurial discovery, and the comparative effectiveness of alternative...