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dc.contributor.authorFoss, Nicolai J., 1964-eng
dc.contributor.authorKlein, Peter G.eng
dc.date.issued2004eng
dc.descriptionPrepared for Rajshree Agarwal, Sharon A. Alvarez, and Olav Sorenson, eds., Handbook of Entrepreneurship: Disciplinary Perspectives (Kluwer, forthcoming)eng
dc.descriptionIncludes bibliographical references.eng
dc.description.abstractThough they developed in isolation, the theory of entrepreneurship and the economic theory of the firm can be usefully integrated. In particular, the concept of entrepreneurship as judgment associated with Knight (1921) and some Austrian school economists aligns naturally with the theory of the firm. Because judgment cannot be purchased on the market, the entrepreneur needs a firm — a set of alienable assets he controls — to carry out his function. We show how this notion of judgment illuminates key themes in the modern theory of the firm (existence, boundaries, and internal organization). In our approach, resource uses are not data, but are created as entrepreneurs envision new ways of using assets to produce final goods. The entrepreneur's problem is aggravated by the fact that capital assets are heterogeneous. Asset ownership allows the entrepreneur to experiment with novel combinations of heterogeneous assets. The boundaries of the firm, as well as aspects of internal organization, may also be understood as responses to entrepreneurial processes of experimentation.eng
dc.identifier.citationContracting and Organizations Research Institute (CORI), Working Paper No.2004-09 (August 2004).eng
dc.identifier.urihttp://hdl.handle.net/10355/141eng
dc.languageEnglisheng
dc.publisherUniversity of Missouri-Columbiaeng
dc.relation.ispartofcollectionAgricultural Economics publications (MU)eng
dc.relation.ispartofcommunityUniversity of Missouri-Columbia. College of Agriculture, Food and Natural Resources. Division of Applied Social Sciences. Department of Agricultural Economicseng
dc.subjectheterogeneous assetseng
dc.subjectjudgmenteng
dc.subjectownershipeng
dc.subjectfirm boundarieseng
dc.subjectinternal organizationeng
dc.subject.lcshEntrepreneurshipeng
dc.subject.lcshIndustrial organization (Economic theory)eng
dc.titleEntrepreneurship and the Economic Theory of the Firm: Any Gains from Trade?eng
dc.typeArticleeng


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