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Entrepreneurship and institutional change

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  • Pavel Kuchař

    () (Universidad de Guanajuato)

Abstract

Abstract Entrepreneurs do more than just buy low and sell high; they sometimes also change our institutions, including our categories of thought. New institutional economics has been examining incentives that drive individuals to bring about market-supporting institutional arrangements. There is, however, an aspect of entrepreneurship conducive to institutional changes that has been neglected by contemporary institutionalist theories and that remains underdeveloped in entrepreneurship research. When and how does entrepreneurship bring about institutional change? I suggest that entrepreneurs are agents of institutional change when cultural categorization is ambiguous with regard to the proper and permissible applications of novel artifacts. Motherhood, for example, used to be a simple category, but surrogacy changed that radically. Examining newspaper evidence, social surveys, statutory law, and judicial cases, I show how entrepreneurs, by provoking a change in interpretation and judgment, challenged the existing institutional legal ordering of procreation turning a technically feasible method of surrogacy into current practice.

Suggested Citation

  • Pavel Kuchař, 2016. "Entrepreneurship and institutional change," Journal of Evolutionary Economics, Springer, vol. 26(2), pages 349-379, May.
  • Handle: RePEc:spr:joevec:v:26:y:2016:i:2:d:10.1007_s00191-015-0433-5
    DOI: 10.1007/s00191-015-0433-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Institutional change; Entrepreneurship; Surrogate motherhood; Persuasion; Political processes;

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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