Culture and Economic Action
Show Less

Culture and Economic Action

Edited by Laura E. Grube and Virgil Henry Storr

This edited volume, a collection of both theoretical essays and empirical studies, presents an Austrian economics perspective on the role of culture in economic action. The authors illustrate that culture cannot be separated from economic action, but that it is in fact part of all decision-making.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 4: The determinants of entrepreneurial alertness and the characteristics of successful entrepreneurs

Virgil Henry Storr and Arielle John


Israel Kirzner has made considerable contributions to our understanding of capital theory (Kirzner 1966), the nature and meaning of the market process (Kirzner 1992), the problems with theories of distributive justice (Kirzner 1989) and the history of economic thought, particularly the history of the Austrian school (Kirzner 1960). Most importantly, however, Kirzner (1973, 1979) has made key contributions to our understanding of the critical role that entrepreneurship plays in markets. For Kirzner, understanding the role of the entrepreneur is essential to understanding how errors get corrected in the market and understanding the role of alertness is essential to understanding how it is that entrepreneurs come to identify these errors. As he explains, in a world where knowledge is necessarily dispersed and individuals are necessarily ignorant of all changes that occur in markets, alert entrepreneurs discover profit opportunities (in other words, opportunities to buy at a low price and sell at a high price) and, thus, drive the market process toward equilibrium. Kirzner’s insights on entrepreneurship have been widely celebrated and have had considerable influence in economics, public policy and entrepreneurship studies. Although Kirzner’s work on entrepreneurship has been widely celebrated, it has been criticized on several fronts. Specifically, his theory of entrepreneurship has been criticized for abstracting from the psychological characteristics of real world entrepreneurs and the determinants of alertness.

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.