Subjective value in entrepreneurship

Bylund, Per L.; Packard, Mark D.

doi:10.1007/s11187-021-00451-2

Cited by 41 publications

(44 citation statements)

References 107 publications

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“…Given that all people have subjective preferences, it is impossible to design a social welfare function to establish an "optimal Pigouvian subsidy". Even in a static world with a dictator capable of controlling the behavior of individuals, it is a delusion to assume that individual preferences can be added to a global preference [31,59,61]. Accordingly, we need to explore how to overcome these coordination problems.…”

Section: Discussionmentioning

confidence: 99%

“…Every entrepreneurial act implies the "alertness" -perception and judgment-of new information that the actor did not previously possess (a profit opportunity that had previously gone unnoticed) [30]. Likewise, entrepreneurial information is subjective, practical (in the sense that it is created through entrepreneurship in its specific contexts), dispersed (the mind of each human being owns a part of it) and tacit (very difficult to articulate) [31]. When an entrepreneur perceives a profit opportunity, the actor creates new information ex-ante in his mind, resulting in a subjective ex-post profit or loss.…”

Section: Theoretical Framework and Methodologymentioning

confidence: 99%

“…However, the concept of externality as a justification for central planning is problematic [26,61]. First, all human actions generate externalities in others in "subjective" ways, so the non-market decision of which externality to subsidize or tax is arbitrary [31]. If we follow the argument that market actors cannot know what is "social optimum", there are epistemological reasons to question that policymakers could coordinate action plans efficiently.…”

Section: Theoretical Framework and Methodologymentioning

confidence: 99%

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The Political Economy of Rent-Seeking: Evidence from Spain’s Support Policies for Renewable Energy

2021

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This paper provides a theoretical framework to explore how the support policies for renewable energies can promote rent-seeking incentives in private firms. We develop a political economy of rent-seeking that considers the link between the regulatory decisions of political agents and the potential scope of socially wasteful pursuits. We argue that systematic public support schemes bring rent-seeking as a perception shared by entrepreneurs that influencing political allocations of resources is an essential and potentially preferable source of private profit than other for-profit economic avenues. As evidence of our claims, the framework is applied to the case of Spain to illustrate the economic effects of support policies on the production and distribution of renewable energy. We find rent-seeking behavior in Spain’s renewable energy industry, and precisely that: (i) political regulations have induced market concentration and rent-seeking in renewable energy firms, (ii) these firms have required increasing regulations and premiums to survive, and (iii) energy consumers are forced to pay rent-seeking through increasingly expensive electricity bills. The analysis reveals some challenges and opportunities to drive efficient market-based policies to strengthen entrepreneurial competition and curb rent-seeking behavior. These insights have relevant proposals for the Spanish energy industry in complying with the EU Green Deal through a sustainable transition and comprehensive growth.

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Section: Discussionmentioning

confidence: 99%

Section: Theoretical Framework and Methodologymentioning

confidence: 99%

Section: Theoretical Framework and Methodologymentioning

confidence: 99%

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The Political Economy of Rent-Seeking: Evidence from Spain’s Support Policies for Renewable Energy

2021

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“…Judgment is the essential element of entrepreneurship to make uncertain decisions regarding current and new resources to satisfy preferences. It is the process of forming an opinion through the discernment and comparison of ideas, plans, or projects about identifying and resolving human problems [30]. While human problems are judgments about some debatable conditions that must be explained and solved, these explanations and solutions have unlimited possibilities according to the actor's imagination, aspirations, expectations, and knowledge [31,32].…”

Section: Dynamic Efficiency and Entrepreneurshipmentioning

confidence: 99%

Principles of Sustainable Economic Growth and Development: A Call to Action in a Post-COVID-19 World

2021

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The analysis of sustainable economic growth and development often focuses on how to control the market process through coercive state intervention. While state interventionism may play a significant role in countries’ progress, entrepreneurship is the driving force behind sustainable growth and development. Entrepreneurship is the people’s judgment on ideas, plans, and projects, which promises profit in uncertain times. Its effects are the creation and transmission of information and social coordination as a dynamic process of identifying and solving human problems. Sustainable development is the widening range of entrepreneurial alternatives open to people, and sustainable growth is a phase of sustainable development that depends on genuine savings to finance increasingly capital-intensive production structures. The degree to which people are entrepreneurs and the direction genuine savings take depend on institutional arrangements. Some institutions are more conducive to sustainable growth and development than others. After reviewing principles of growth and development sustainability, how coercive state intervention influences economic performance is discussed, proposing novel policy conclusions and research avenues to cultivate entrepreneurship and genuine savings in a post-COVID-19 world.

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“…Entrepreneurship judges the suitability of the means to achieve ends under uncertainty. Judgment is the crucial element of entrepreneurship to make uncertain decisions regarding the uses of current or new resources to satisfy future preferences (Foss and Klein 2012;Bylund and Packard 2021). Therefore, it can be considered that entrepreneurial judgment is the process of forming an opinion by discerning and comparing ideas or plans about identifying and resolving human problems.…”

Section: Entrepreneurship: the Driving Force Of The Market Economymentioning

confidence: 99%

Private Property Rights, Dynamic Efficiency and Economic Development: An Austrian Reply to Neo-Marxist Scholars Nieto and Mateo on Cyber-Communism and Market Process

2021

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The Austrian school economics and neo-Marxist theories both have been reviving in recent years. However, the current academic discussion lacks a debate between two schools of economics with diametrically opposed views. This paper is the first and an initial Austrian challenge to Neo-Marxist scholars Nieto and Mateo’s argumentation that cyber-communism and the Austrian theory of dynamic efficiency are consistent to enhance economic development. Their argument focuses on two issues: (a) the existence of circular reasoning in the Austrian theory of dynamic efficiency, and (b) dynamic efficiency and full economic development could be strongly promoted in a socialist system through new information and communication technologies (ICT) and the democratization of all economic life. While cyber-communism refers to cyber-planning without private property rights through ICT, dynamic efficiency refers to the entrepreneurs’ creative and coordinative natures. In this paper, first, we argue that the hypothesis that dynamic efficiency and cyber-communism is not compatible. Contrary to the above cyber-communist criteria, the Austrian theory of dynamic efficiency argues that to impede private property rights is to remove the most powerful entrepreneurial incentive to create and coordinate profit opportunities. Second, we argue that the cyber-communism system is inconsistent with economic development. In this regard, we explain how the institutional environment can cultivate or stifle dynamic efficiency and economic development. Having briefly outlined the central argument of Nieto and Mateo, we examine the institutional arrangement supporting cyber-communism. After that, we evaluate the implications of cyber-communism in the dynamic efficiency process. It becomes manifest that Nieto and Mateo’s accounts are too general to recognize the complexity of how economic development works.

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Subjective value in entrepreneurship

Cited by 41 publications

References 107 publications

The Political Economy of Rent-Seeking: Evidence from Spain’s Support Policies for Renewable Energy

The Political Economy of Rent-Seeking: Evidence from Spain’s Support Policies for Renewable Energy

Principles of Sustainable Economic Growth and Development: A Call to Action in a Post-COVID-19 World

Private Property Rights, Dynamic Efficiency and Economic Development: An Austrian Reply to Neo-Marxist Scholars Nieto and Mateo on Cyber-Communism and Market Process

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