Entrepreneurship and the Economic Theory of Markets

Entrepreneurship and the Economic Theory of Markets focuses on the role of entrepreneurs in a market economy and presents a theory of innovation, imitation and competitive rivalry in a segmented global market where entrepreneurs are the key agents of change. This monograph is unusual in setting out a formal mathematical model of entrepreneurship that is essential to prove its point in a way that convinces economists as well as entrepreneurship scholars.The monograph is set in six sections. Sections 1, 4, and 6 are essential reading. Section 1 introduces the topic. Section 2 presents a formal model which is the analytical core of the paper. Section 3 presents some case studies that illustrate the wide-ranging scope of the model. Section 4 reflects on how the model compares with alternative approaches to the economy, from the formative period of economic theory down to the present day. Section 5 examines the social fabric within which entrepreneurship is conducted, with an emphasis on institutions such as clubs and cartels. Conclusions and policy implications are summarized in Section 6, with a special emphasis on the teaching of entrepreneurship and its relationship to economic theory.