Modern Theories of Entrepreneurial Behavior: An Appraisal

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dc.contributor.author Endres, Anthony en
dc.contributor.author Woods, Christine en
dc.date.accessioned 2006-11-30T20:53:22Z en
dc.date.available 2006-11-30T20:53:22Z en
dc.date.issued 2003 en
dc.identifier.citation Department of Economics Working Paper Series 244 en
dc.identifier.uri http://hdl.handle.net/2292/148 en
dc.description.abstract This paper compares three principal, contemporary theories of entrepreneurial decision making - neoclassical, Austrian and behavioral. We employ theory appraisal criteria made available in Fritz Machlup's (1967) celebrated article on alternative theories of the firm. The paper considers theories that treat sequences of behavior by which individual entrepreneurs reach decisions on two levels: the discovery of profit opportunities and their exploitation. We also consider how each theory characterizes the entrepreneur's decision making process by contrast with the posited behavior of other economic agents. Austrian theory is suited to explaining novel, adventurous behavior at the discovery stage. The algorithm for opportunity exploitation in both the neoclassical and Austrian approaches is a single-repertoire, optimization rule. Neoclassical theory is situated in frictionless, atomistic Walrasian markets and emphasizes mathematical tractability. Austrian and behavioral theories conceive entrepreneurial acts taking place in market processes understood as complex institutional phenomena. There are strong theoretical complementarities between Austrian and behavioral approaches; both approaches value descriptive accuracy, though the behavioralists place more weight on operational tractability. Austrians and behavioralists share an interest in heuristics; they emphasize the role of prior micro-level knowledge at the discovery stage. Currently there is no possibility of an all-encompassing theory of entrepreneurial behavior emerging in the literature. en
dc.format.extent application/pdf en
dc.format.mimetype text en
dc.language.iso en en
dc.publisher ResearchSpace@Auckland en
dc.relation.ispartofseries Department of Economics Working Paper Series (1997-2006) en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm en
dc.subject.other entrepreneurial behavior en
dc.subject.other Economics en
dc.title Modern Theories of Entrepreneurial Behavior: An Appraisal en
dc.type Working Paper en
dc.rights.holder Copyright: the author en
dc.rights.accessrights http://purl.org/eprint/accessRights/OpenAccess en
dc.relation.isnodouble 20774 *
pubs.org-id Economics en


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