Entrepreneurship

toward the Nirvana state of rest

  • Mark Packard University of Nevada, Reno
Keywords: Entrepreneurship, Market Process, States of Rest, Equilibrium

Abstract

In this paper, we reconsider the various states of rest within Austrian market process theory. While this theory certainly embodies a superior representation of market processes to the neoclassical general equilibrium theory, it falls short of producing a holistic theory of human action. The analysis left out those human actions that produce changes to the so-called ‘final state of rest,’ which have so far been taken as exogenous to the market process. These exogenous shocks include knowledge generation and preference shifting. However, I argue that these can and ought to be understood as market phenomena, and so belong within the scope of praxeological analysis. To capture these types of human action, I propose that a new and truly ‘final’ state of rest be introduced, which we term the ‘nirvana state of rest.’ This new state represents a ‘true’ final state, in which human action ceases because all needs, and thus all motivation to act, are completely and perpetually assuaged. Introducing this state into the analysis, we can break free from myopic analyses of mere present states of knowledge and values to observe and explain general tendencies in market processes, prices, and entrepreneurship. I also show how quarrels within Austrian circles might be resolved through this expanded, macroscopic lens. 

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

Author Biography

Mark Packard, University of Nevada, Reno

Mark Packard is Assistant Professor of Management at the University of Nevada, Reno. His research interests center primarily in the theory of entrepreneurship, the philosophy of science, and uncertainty.

References

COWEN, T.; FINK, R. Inconsistent equilibrium constructs: the evenly rotating economy of Mises and Rothbard. The American Economic Review, v. 75, n. 4, 1985.

FOSS, N. J.; KLEIN, P. G. Organizing entrepreneurial judgment: A new approach to the firm. Cambridge: Cambridge University Press, 2012. DOI: https://doi.org/10.1017/CBO9781139021173

HAYEK, F. A. The pretence of knowledge. The American Economic Review, v. 79, n. 6, 1989.

HAYEK, F. A. Competition as a discovery procedure. Quarterly Journal of Austrian Economics, v. 5, n. 3, 2002. DOI: https://doi.org/10.1007/s12113-002-1029-0

HAYWARD, M. L.; SHEPHERD, D. A.; GRIFFIN, D. A hubris theory of entrepreneurship. Management Science, v. 52, n.2, 2006. DOI: https://doi.org/10.1287/mnsc.1050.0483

HICKS, J. R. Léon Walras. Econometrica, v. 2, n. 4, 1934. DOI: https://doi.org/10.2307/1907106

HICKS, J. R. Value and Capital. Oxford: Clarendon Press, 1946.

KEALY, T. The Economic Laws of Scientific Research. New York: St Martin’s Press, 1946.

KIRZNER, I. M. Market theory and the price system. Princeton: Van Nostrand, 1963.

KIRZNER, I. M. Competition and entrepreneurship. Chicago: University of Chicago Press, 1973.

KIRZNER, I. M. Economics and error. In: SPADARO, L. M. (ed.). New directions in Austrian economics: Kansas City: Sheed Andrews and McMeel, 1978.

KIRZNER, I. M. Entrepreneurial discovery and the competitive market process: An Austrian approach. Journal of Economic Literature, v. 35, n. 1, 1967.

KIRZNER, I. M. Creativity and/or alertness: A reconsideration of the Schumpeterian entrepreneur. The Review of Austrian Economics, v. 11, n. 1, 1999.

KLEIN, P. G. The mundane economics of the Austrian school. The Quarterly Journal of Austrian Economics, v. 11, 2008. DOI: https://doi.org/10.1007/s12113-008-9045-3

KNIGHT, F. Risk, uncertainty and profit. New York: Hart, Schaffner, and Marx, 1921.

LACHMANN, L. M. From Mises to Shackle: An essay on Austrian economics and the kaleidic society. Journal of Economic Literature, v. 14, n.1, 1976.

LACHMANN, L. M. Capital, expectations, and the market process: essays on the theory of the market economy. Kansas City: Sheed Andrews and McMeel, Inc, 1977.

LACHMANN, L. M. Capital and its Structure. Kansas City: Sheed Andrews and McMeel, 1978.

LACHMANN, L. M. The market as an economic process. New York: Blackwell, 1986.

MANISH, G. Error, equilibrium, and equilibration in Austrian price theory. Quarterly Journal of Austrian Economics, v. 17, n. 2, 2014.

MCGRATH, R. G. The end of competitive advantage: How to keep your strategy moving as fast as your business. Boston: Harvard Business Press, 2003.

MISES, L. V. Profit and loss. South Holland, IL: Consumers-Producers Economic Services, 1951.

MISES, L. V. Theory and History. Auburn: Ludwig von Mises Institute, 1985.

MISES, L. V. Human action: A treatise on economics. Auburn: Ludwig von Mises Institute, 1998.

OPEN SCIENCE COLLABORATION. Estimating the reproducibility of psychological science. Science, v. 349, n. 6251, 2015. DOI: https://doi.org/10.1126/science.aac4716

ROTHBARD, M. N. The present state of Austrian economics. In: ROTHBARD, M. N. (ed.), The Logic of Action One: Method, Money, and the Austrian School. Cheltenham: Edward Elgar, 1995.

ROTHBARD, M. N. Man, Economy, and State. Auburn: Ludwig von Mises Institute, 2009.

ROTHBARD, M. N. Science, Technology, and Government. Auburn: Ludwig von Mises Institute, 2015.

SALERNO, J. T. Commentary: The concept of coordination in Austrian macroeconomics. In: EBELING, R. (ed.). Austrian Economics, Hillsdale, MI: Hillsdale College Press, 1991.

SALERNO, J. T. Ludwig von Mises’s monetary theory in light of modern monetary thought. The Review of Austrian Economics, v. 8, n. 1, 1994. DOI: https://doi.org/10.1007/BF01102317

SALERNO, J. T. The place of Mises’s human action in the development of modern economic thought. The Quarterly Journal of Austrian Economics, v. 2, n.1, 1999. DOI: https://doi.org/10.1007/s12113-999-1025-8

SCHUMPETER, J. A. Capitalism, socialism, and democracy. New York: Harper, 1942.

SHACKLE, G. L. S. Decision, order, and time in human affairs. Cambridge: Cambridge University Press, 1961.

SHACKLE, G. L. S. Expectation, enterprise and profit: The theory of the firm. Chicago, IL: Aldine, 1970.

SHACKLE, G. L. S. Imagination and the nature of choice. Edinburgh: Edinburgh University Press, 1979.

SIMON, H. A. Models of thought. Yale University Press, 1979.

STIGLITZ, J. E. The causes and consequences of the dependence of quality on price. Journal of Economic Literature, v. 25, n. 1, 1987.

WICKSTEED, P. H. The common sense of political economy. New York: Macmillan and Company, 1910.

WIGGING, R. R.; RUELI, T. W. Schumpeter’s ghost: is hypercompetition making the best of times shorter? trategic

Management Journal, v. 26, n. 10, 2005. DOI: https://doi.org/10.1108/01435120510572815

WITT, U. Learning to consume – A theory of wants and the growth of demand. Journal of Evolutionary Economics, v. 11, n. 1, 2001. DOI: https://doi.org/10.1007/PL00003851

Published
2019-11-07
How to Cite
1.
Packard M. Entrepreneurship. MisesJournal [Internet]. 2019Nov.7 [cited 2019Nov.12];7(3). Available from: https://revistamises.org.br/misesjournal/article/view/1222
Section
Original Research Articles