The Entrepreneur: An Economic Theory

The Entrepreneur: An Economic Theory, Second Edition......Page 4
Cover......Page 1
Contents......Page 6
Figures......Page 7
Tables......Page 8
Preface to the second edition......Page 9
JACK BRASH ¨C ENTREPRENEUR......Page 14
PART I  Theoretical Foundations......Page 20
1.1 A GAP IN ECONOMIC THEORY......Page 22
1.2 A REVIEW OF THE ISSUES......Page 23
1.3 OUTLINE OF THE APPROACH......Page 26
1.4 PLAN OF THE BOOK......Page 29
NOTES AND REFERENCES......Page 30
2.1 TWO KINDS OF DEFINITION......Page 32
2.2 THE FUNCTION OF THE ENTREPRENEUR......Page 33
2.3 THE DEMAND FOR ACTIVE DECISION MAKING......Page 35
2.4 RESOURCE COSTS OF DECISION MAKING......Page 37
2.5 DECISION MAKING BY TEAMS......Page 41
2.6 ENTREPRENEURIAL QUALITIES......Page 42
NOTES AND REFERENCES......Page 45
3.1 INTRODUCTION......Page 47
3.2 THE CONCEPT OF COORDINATION......Page 48
3.3 THE ENTREPRENEUR AS MIDDLEMAN......Page 49
3.4 ENTREPRENEURSHIP WITH LIMITED INFORMATION......Page 52
3.5 THE ENTREPRENEUR¡¯S BARGAINING TACTICS......Page 54
SUMMARY......Page 55
4.1 INTRODUCTION......Page 56
4.2 COMPETITION IN EXPLOITATION......Page 57
4.3 INTERMEDIATING EXCHANGE USING A ONE-PART TARIFF......Page 59
4.4 BARRIERS TO ENTRY......Page 62
4.5 COMPETITIVE SEARCH FOR INFORMATION......Page 64
4.6 COORDINATION OF SEARCH BY CONJECTURE......Page 66
NOTES AND REFERENCES......Page 68
5.1 INTRODUCTION......Page 69
5.2 THE CASE FOR SEQUENTIAL NEGOTIATION......Page 70
5.3 TECHNOLOGICAL INNOVATION......Page 72
5.4 PRODUCT INNOVATION......Page 76
5.5 ARBITRAGE......Page 77
5.6 ARBITRAGING STOCKS INSTEAD OF FLOWS......Page 81
5.7 THE SYNTHESIS OF INFORMATION......Page 83
5.8 BARRIERS TO ENTRY IN PRACTICE......Page 84
NOTES AND REFERENCES......Page 88
PART II  The Market- making Firm......Page 90
6.1 INTRODUCTION......Page 92
6.2 A CRITIQUE OF PERFECT COMPETITION......Page 93
6.3 OBSTACLES TO TRADE AND TRANSACTION COSTS......Page 97
6.4 INFORMATION COSTS IN MARKET MAKING......Page 98
6.5 FACTORS AFFECTING MARKET- MAKING COSTS......Page 102
6.6 CONTINGENT FORWARD CLAIMS AND THEIR SPECIAL PROBLEMS......Page 105
6.7 GENERAL METHODS OF REDUCING MARKET- MAKING COSTS......Page 106
6.8 MONITORS AND SANCTIONS......Page 109
6.9 THE FIRM AS A MARKET- MAKING ORGANIZATION......Page 110
6.10 PRICE AND QUANTITY DETERMINATION WITH MARKET-MAKING COSTS......Page 112
NOTES AND REFERENCES......Page 117
7.1 INTRODUCTION......Page 119
7.2 STRATEGIES FOR COMBINING MARKETS......Page 120
7.3 THE INNOVATION OF A MULTI- PURPOSE GOOD......Page 122
7.4 INTERNALIZATION......Page 124
7.5 THE INTERNALIZATION OF LABOUR SERVICES THROUGH THE EMPLOYMENT CONTRACT......Page 126
7.6 SELF- EMPLOYMENT AND THE FAMILY FIRM......Page 128
SUMMARY......Page 130
NOTES AND REFERENCES......Page 131
8.1 INTRODUCTION......Page 132
8.2 THE LICENSING OPTION......Page 133
8.3 THE BETTING OPTION......Page 135
8.4 PORTFOLIO SPECULATION......Page 136
8.5 FORWARD INTEGRATION INTO COORDINATION......Page 138
8.6 FINANCING THE ENTREPRENEUR......Page 140
8.7 REDUCING LENDER¡¯S RISK......Page 142
8.8 THE ENTREPRENEUR AS EMPLOYEE......Page 143
8.9 THE SIGNIFICANCE OF THE FIRM......Page 145
SUMMARY......Page 146
NOTES AND REFERENCES......Page 147
9.1 FAILURE OF RECONTRACTING......Page 148
9.2 SPOT PRICE STABILITY......Page 150
9.3 PRIORITY UNDER RATIONING......Page 151
9.4 RESPECT FOR SOCIAL CONVENTION......Page 153
9.6 SPECULATIVE BEHAVIOUR OF THE MARKET MAKER......Page 155
NOTES AND REFERENCES......Page 158
10.1 THE PACKAGING OF MARKET- MAKING SERVICES......Page 159
10.2 THE PRICING OF MARKET- MAKING SERVICES......Page 160
10.3 INTERNALIZATION OF MARKET- MAKING ACTIVITIES......Page 161
10.4 INTEGRATION OF PRODUCTION AND MARKET MAKING......Page 162
10.5 THE SPATIAL DIMENSION OF DISTRIBUTION AND THE ROLE OF THE RETAILER......Page 165
10.6 THE PRODUCER －ENTREPRENEUR AND THE RETAILER–ENTREPRENEUR......Page 168
SUMMARY......Page 170
NOTES AND REFERENCES......Page 171
PART III  Synthesis......Page 172
11.1 NATURE OF THE FIRM......Page 174
11.2 THE SCOPE OF THE FIRM......Page 175
11.3 ALTERNATIVE FORMS OF CONTROL......Page 176
11.4 THE FOUNDING OF A FIRM......Page 178
11.5 EARLY CONSTRAINTS ON GROWTH......Page 180
11.6 THE SUPPLY OF LABOUR TO THE FIRM......Page 182
11.7 GROWTH OF THE PRODUCT MARKET......Page 184
11.8 ADVERTISING AND MARKET GROWTH......Page 186
11.9 IMPACT OF SOCIAL GROUPING ON PRODUCT DEMAND......Page 188
11.10 CAPITALIZING ON EXPERIENCE......Page 189
11.11 INDIVISIBILITIES AND THE DYNAMICS OF DIVERSIFICATION......Page 192
11.12 THE DYNAMICS OF MARKET STRUCTURE......Page 194
SUMMARY......Page 198
NOTES AND REFERENCES......Page 199
12.2 IDENTIFYING JUDGMENTAL DECISIONS......Page 201
12.3 IDENTIFYING AN ENTREPRENEUR......Page 203
12.4 MATCHING DECISIONS TO ENTREPRENEURS......Page 204
12.5 THE ENTREPRENEUR¡¯S REWARD IN THE SHORT AND LONG RUN......Page 206
12.6 RISK AND THE REWARD TO THE ENTREPRENEUR......Page 211
SUMMARY......Page 212
13.2 ALTERNATIVE FORMS OF ENTREPRENEURSHIP......Page 213
13.3 ALTERNATIVE AVENUES OF SOCIAL ADVANCEMENT......Page 218
13.4 CONSTRAINTS ON ADVANCEMENT......Page 220
13.5 EDUCATION AND ENTREPRENEURSHIP......Page 221
13.6 THE PERSONAL QUALITIES OF THE SELFE-MPLOYED ENTREPRENEUR......Page 223
13.7 RELIGIOUS AND ETHNIC FACTORS......Page 225
NOTES AND REFERENCES......Page 226
14.2 LEIBENSTEIN¡¯S X- EFFICIENCY THEORY......Page 228
14.3 HAYEK AND KIRZNER ON THE MARKET PROCESS......Page 231
14.4 KNIGHT ON THE ROLE OF UNCERTAINTY......Page 233
14.5 SCHUMPETER ON INNOVATION......Page 236
14.6 ANDREWS AND PENROSE ON THE ENTREPRENEURIAL FIRM......Page 238
14.7 THE PRESENT THEORY AND ITS RELATION TO ITS PRECURSORS......Page 241
NOTES AND REFERENCES......Page 244
15.2 ACCESS TO INFORMATION......Page 246
15.3 BARRIERS TO ENTRY INTO ENTREPRENEURSHIP......Page 248
15.4 THE SKILLS OF ENTREPRENEURSHIP......Page 251
15.5 TOWARDS A UNIFIED SOCIAL SCIENCE?......Page 254
SUMMARY......Page 255
Bibliography......Page 257
Index......Page 278