Heterogeneous Capital, Entrepreneurship, and Economic Organization
AbstractOne of Israel KirznerÂs less wellknown contributions is to the theory of capital. In this paper, we link the Austrian theory of capital and the theory of economic organization. Our starting point is the key Austrian notion of capital heterogeneity which we interpret in terms of attributes. Most capital assets are multi-attribute in nature, and many attributes may not be known to entrepreneurs. This fosters a need for experimenting with capital combinations. Because there are costs of measuring attributes, this process has implications for economic organization. Thus, we argue that novel implications for the understanding of ownership and the existence and boundaries of firms may be teased out of such a perspective.La thÃ©orie du capital reprÃ©sente une des contributions les moins connues dÂIsrael Kirzner. Dans cet article, nous Ã©tablissons le lien entre la thÃ©orie autrichienne du capital et la thÃ©orie de lÂorganisation Ã©conomique. Notre point de dÃ©part est la notion autrichienne fondamentale dÂhÃ©tÃ©rogÃ©nÃ©itÃ© du capital que nous interprÃ©tons en termes dÂattributs. De par leur nature, la plupart des biens capitaux possÃ¨dent plusieurs attributs qui peuvent demeurer inconnus aux entrepreneurs. Ceci accroÃ®t la nÃ©cessitÃ© dÂexpÃ©rimenter des combinaisons capitalistiques. Etant donnÃ© les coÃ»ts quÂentraÃ®ne la mesure des attributs, ce processus a des implications quant Ã lÂorganisation Ã©conomique. Ainsi, cette perspective permet de tirer de nouvelles implications pour notre comprÃ©hension de la propriÃ©tÃ©, de lÂexistence et de la taille des firmes.
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Bibliographic InfoPaper provided by Department of Industrial Economics and Strategy, Copenhagen Business School in its series IVS/CBS Working Papers with number 2002-02.
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Web page: http://www.cbs.dk/forskning_viden/fakulteter_institutter_centre/institutter/oekonomi/ivs/
Other versions of this item:
- Foss Kirsten & Foss Nicolai & Klein Peter G. & Klein Sandra K., 2002. "Heterogeneous Capital, Entrepreneurship, and Economic Organization," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 12(1), pages 1-20, March.
- Kirsten Foss & Nicolai J. Foss & Peter G. Klein & Sandra K. Klein, 2002. "Heterogeneous Capital, Entrepreneurship, and Economic Organization," DRUID Working Papers 02-01, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
- B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
- D2 - Microeconomics - - Production and Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-01-22 (All new papers)
- NEP-ENT-2002-01-05 (Entrepreneurship)
- NEP-TID-2002-01-22 (Technology & Industrial Dynamics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Nicolai J. Foss, 1996. "Firms, Incomplete Contracts and Organizational Learning," DRUID Working Papers 96-2, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Nicolai J. Foss & Peter G. Klein, 2004. "Entrepreneurshoip and the Economic Theory of the Firm Any Gains from Trade?," DRUID Working Papers 04-12, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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