IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v88y2013icp62-77.html
   My bibliography  Save this article

Property rights, entrepreneurship and coordination

Author

Listed:
  • Harper, David A.

Abstract

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.

Suggested Citation

  • Harper, David A., 2013. "Property rights, entrepreneurship and coordination," Journal of Economic Behavior & Organization, Elsevier, vol. 88(C), pages 62-77.
  • Handle: RePEc:eee:jeborg:v:88:y:2013:i:c:p:62-77
    DOI: 10.1016/j.jebo.2011.10.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167268111002678
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Klein, Daniel & Orsborn, Aaron, 2009. "Concatenate coordination and mutual coordination," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 176-187, October.
    3. T. de Scitovszky, 1941. "A Note on Welfare Propositions in Economics," Review of Economic Studies, Oxford University Press, vol. 9(1), pages 77-88.
    4. Kirzner, Israel M, 1999. "Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1-2), pages 5-17.
    5. Gunning, J Patrick, 2000. "The Property System in Austrian Economics: Ronald Coase's Contribution," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 13(2), pages 209-220, September.
    6. Israel Kirzner, 1998. "Coordination as a Criterion for Economic “Goodness”," Constitutional Political Economy, Springer, vol. 9(4), pages 289-301, December.
    7. 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.
    8. Barzel,Yoram, 1997. "Economic Analysis of Property Rights," Cambridge Books, Cambridge University Press, number 9780521597135, April.
    9. 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 1-22, June.
    10. Erica Field, 2007. "Entitled to Work: Urban Property Rights and Labor Supply in Peru," The Quarterly Journal of Economics, Oxford University Press, vol. 122(4), pages 1561-1602.
    11. M.J. Rizzo, 1992. "Equilibrium Visions," South African Journal of Economics, Economic Society of South Africa, vol. 60(1), pages 66-73, March.
    12. 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.
    13. Peter Lewin, 1997. "Hayekian equilibrium and change," Journal of Economic Methodology, Taylor & Francis Journals, vol. 4(2), pages 245-266.
    14. 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.
    15. Benson, Bruce L, 2002. "Regulatory Disequilibrium and Inefficiency: The Case of Interstate Trucking," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 15(2-3), pages 229-255, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Harper, 2014. "Property rights as a complex adaptive system: how entrepreneurship transforms intellectual property structures," Journal of Evolutionary Economics, Springer, vol. 24(2), pages 335-355, April.

    More about this item

    Keywords

    Economic coordination; Property rights; Market process; Entrepreneurship;

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D60 - Microeconomics - - Welfare Economics - - - General
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • P11 - Economic Systems - - Capitalist Systems - - - Planning, Coordination, and Reform
    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/jebo .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.