Property rights, entrepreneurship and coordination
The notion of plan coordination enjoys a central place in the analysis of institutions and competitive market processes. The conventional wisdom is that institutions and policies vary in the extent to which they promote competition and how quickly and completely they bring individuals’ plans into closer coordination with one another. Kirzner has provided the most fully elaborated statement on the use of coordination as a positive analytical device for explaining market dynamics and as a normative criterion for evaluating economic policies. We identify the core propositions in his analysis that elucidate how economic coordination depends upon that most fundamental of market institutions – the system of private property rights. We also probe into Kirzner's claims about inherent limitations in our ability to compare the coordinative potential of alternative property rights systems. We unpack the consequences of these core propositions using the economic theory of property rights. We also examine Kirzner's assertion that dynamic competition – including Schumpeterian innovation – is necessarily coordinative in its market effects. We find that his argument rests on the implicit assumption that property rights remain constant during the process of market adjustment. We provide a case study of the advent of commercial aviation as a potential counterexample to his claims.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Erica Field, 2007. "Entitled to Work: Urban Property Rights and Labor Supply in Peru," The Quarterly Journal of Economics, MIT Press, vol. 122(4), pages 1561-1602, November.
- Kirzner, Israel M, 1999. " Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer, vol. 11(1-2), pages 5-17.
- repec:cup:cbooks:9780521597135 is not listed on IDEAS
- Krecké Elisabeth, 2002. "The Role of Entrepreneurship in Shaping Legal Evolution," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 12(2), pages 1-18, June.
- Klein, Daniel B. & Orsborn, Aaron, 2008.
"Concatenate Coordination and Mutual Coordination,"
Ratio Working Papers
116, The Ratio Institute.
- Daniel Klein, 1997. "Convention, Social Order, and the Two Coordinations," Constitutional Political Economy, Springer, vol. 8(4), pages 319-335, December.
- M.J. Rizzo, 1992. "Equilibrium Visions," South African Journal of Economics, Economic Society of South Africa, vol. 60(1), pages 66-73, 03.
- Daniel B. Klein & Jason Briggeman, 2010.
"Israel Kirzner on Coordination and Discovery,"
Journal of Private Enterprise,
The Association of Private Enterprise Education, vol. 25(Spring 20), pages 1-53.
- Kirzner Israel M., 1999. "Hedgehog Or Fox? Hayek And The Idea Of Plan-Coordination," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 9(2-3), pages 22, June.
- Whitman Douglas Glen, 2002. "Legal Entrepreneurship and Institutional Change," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 12(2), pages 1-13, June.
- Israel Kirzner, 1998. "Coordination as a Criterion for Economic “Goodness”," Constitutional Political Economy, Springer, vol. 9(4), pages 289-301, December.
- Gunning, J Patrick, 2000. " The Property System in Austrian Economics: Ronald Coase's Contribution," The Review of Austrian Economics, Springer, vol. 13(2), pages 209-20, September.
- Jakee, Keith & Spong, Heath, 2003. "Praxeology, Entrepreneurship and the Market Process: A Review of Kirzner's Contribution," Journal of the History of Economic Thought, Cambridge University Press, vol. 25(04), pages 461-486, December.
- Benson, Bruce L, 2002. " Regulatory Disequilibrium and Inefficiency: The Case of Interstate Trucking," The Review of Austrian Economics, Springer, vol. 15(2-3), pages 229-55, June.
- Peter Lewin, 1997. "Hayekian equilibrium and change," Journal of Economic Methodology, Taylor & Francis Journals, vol. 4(2), pages 245-266.
When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:88:y:2013:i:c:p:62-77. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.