The Entrepreneur
Show Less

The Entrepreneur

An Economic Theory, Second Edition

Mark Casson

This thoroughly revised and updated new edition of Mark Casson’s modern classic The Entrepreneur presents a novel synthesis of the ideas of Joseph Schumpeter, Frank Knight and Friedrich Hayek, according to which the defining characteristic of the entrepreneur is the exercise of judgement in business decisions.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 12: The Market for Entrepreneurs

Mark Casson


12.1 INTRODUCTION The market for entrepreneurs allocates judgmental decisions to entrepreneurs. It has, in fact, four main functions: 1. 2. 3. 4. to identify decisions which are judgmental, to identify entrepreneurs whose judgment is likely to be correct, to match entrepreneurs to judgmental decisions so that wherever possible the right decision is made, and to distribute rewards to the entrepreneurs. It is sometimes denied that a market for entrepreneurs can exist. This is incorrect. It must be admitted, however, that the market for entrepreneurs has some unusual features which mean that it operates in a different way from most other markets. 12.2 IDENTIFYING JUDGMENTAL DECISIONS One of the idiosyncrasies of the market for entrepreneurs is indicated by the first of the functions identified above. It is extremely difficult to determine precisely which decisions are judgmental. As a result it is difficult for anyone to identify a precise source of demand for an entrepreneur. Consider the demand for entrepreneurs within the economy as a whole, and consider too a single period, prior to which the economy has been in operation for some considerable time. A system of property rights has been evolved; decision-making power is conferred by ownership of general rights – typically rights to determine the use of multi-purpose goods (see Chapter 7). Many of these rights are vested in institutions such as firms. Each institution has an organization comprising a set of posts filled by delegate decision makers. Delegate decision makers within the same organization coordinate their...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.