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Perception, Opportunity, and Profit: Studies in the Theory of Entrepreneurship
Published in 1983 by the University of Chicago Press
Paperback
First published January 1, 1979
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About the author
Israel M. Kirzner
63 books42 followersLeading economist of the Austrian School.
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Displaying 1 - 2 of 2 reviews
August 3, 2024
AN AUSTRIAN ECONOMIST LOOKS AT THE ROLE OF ENTREPRENEURS
Israel Meir Kirzner (born 1930) is a leading economist in the Austrian School. He wrote in the Preface to this 1979 book, "This theme---the role of entrepreneurship in market processes... [points to] the need for a thorough revision of the very core of modern economic theory... The papers here presented ... represent an attempt to demonstate further the profound significance of those entrepreneurial aspects of human action that are not captured in the standard models of economic decision making." (Pg. ix-x)
He notes, "Mises's concept of human action ... recognizes that men are not only calculating agents but are also alert to opportunities... This alertness is the entrepreneurial element in human action... entrepreneurship converts the theory of market equilibrium into a theory of market process." (Pg. 7) He adds, however, that "Much work still needs to be done. It would be good to know more about the institutional settings that are most conducive to opportunity discovery. It would be good to apply basic Austrian theory to the theory of speculation and of the formation of expectations with regard to future prices. All this would enrich our understanding of the economics of bureaucracy and of socialism." (Pg. 12)
He suggests, "entrepreneurship exists in captal-using production processes... [since] capitalists themselves, in lending their capital to entrepreneur-producers, are necessarily acting entrepreneurially." (Pg. 87) Later, he adds, "the essence of the entrepreneurial decision consists in grasping the knowledge that might otherwise remain unexploited." (Pg. 109)
He proposes, "Instead of seeing how the entrepreneur has disturbed the placid status quo, we must see how the status quo is nothing but a seething mass of unexploited maladjustments crying out for correction." (Pg. 119) He concedes, "it cannot be denied that pure luck plays a most significant role in determining the future of market participants in general and market entrepreneurship in particular..." (Pg. 178-179)
He concludes, "the insight into the entrepreneurial discovery coupled with the possibility of a finders-keepers ethic... has enabled us to perceive possible justification for the free operation of a market system... there does seem to be a certain plausibility in the notion of ownership through creativity. This plausibility may help explain how so many observers of the market find it consistent with economic justice in the face of denunciations of the moralist critics of capitalism." (Pg. 223-224)
Kirzner's works are of considerable interest to students of Austrian economics.
Israel Meir Kirzner (born 1930) is a leading economist in the Austrian School. He wrote in the Preface to this 1979 book, "This theme---the role of entrepreneurship in market processes... [points to] the need for a thorough revision of the very core of modern economic theory... The papers here presented ... represent an attempt to demonstate further the profound significance of those entrepreneurial aspects of human action that are not captured in the standard models of economic decision making." (Pg. ix-x)
He notes, "Mises's concept of human action ... recognizes that men are not only calculating agents but are also alert to opportunities... This alertness is the entrepreneurial element in human action... entrepreneurship converts the theory of market equilibrium into a theory of market process." (Pg. 7) He adds, however, that "Much work still needs to be done. It would be good to know more about the institutional settings that are most conducive to opportunity discovery. It would be good to apply basic Austrian theory to the theory of speculation and of the formation of expectations with regard to future prices. All this would enrich our understanding of the economics of bureaucracy and of socialism." (Pg. 12)
He suggests, "entrepreneurship exists in captal-using production processes... [since] capitalists themselves, in lending their capital to entrepreneur-producers, are necessarily acting entrepreneurially." (Pg. 87) Later, he adds, "the essence of the entrepreneurial decision consists in grasping the knowledge that might otherwise remain unexploited." (Pg. 109)
He proposes, "Instead of seeing how the entrepreneur has disturbed the placid status quo, we must see how the status quo is nothing but a seething mass of unexploited maladjustments crying out for correction." (Pg. 119) He concedes, "it cannot be denied that pure luck plays a most significant role in determining the future of market participants in general and market entrepreneurship in particular..." (Pg. 178-179)
He concludes, "the insight into the entrepreneurial discovery coupled with the possibility of a finders-keepers ethic... has enabled us to perceive possible justification for the free operation of a market system... there does seem to be a certain plausibility in the notion of ownership through creativity. This plausibility may help explain how so many observers of the market find it consistent with economic justice in the face of denunciations of the moralist critics of capitalism." (Pg. 223-224)
Kirzner's works are of considerable interest to students of Austrian economics.
February 11, 2023
The book is full of references to the economic thoughts of theoreticians and very detailed. It gets philosophical, as it must to justify its conclusions. It reads like a PHD thesis with good insights.
Displaying 1 - 2 of 2 reviews