Equilibrium, Disequilibrium, and Entrepreneurship
Bibliographic Data
| ID | 23597316 |
|---|---|
| Authors | Thomas J Dean (0000-0001-5675-2226, Colorado State University, corresponding author) |
| Year | 2015 |
| Pages | 1-3 |
| Publication date | 2015-01-21 |
| Open Access | Yes |
| Type | CHAPTER |
| Venue | Wiley Encyclopedia of Management (SOURCE_BOOK) |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/9781118785317.weom030036 |
| OpenAlex | W1549156192 |
| ISBN | 9781118785317 |
| Language | EN |
| References cited | 9 |
The concept of market disequilibrium plays a central role in the understanding of the nature of entrepreneurship and its function in the economic system. While some authors emphasize the role of entrepreneurship in the movement of markets away from the condition of equilibrium (through the introduction of discontinuous change), others view the entrepreneurial process as fundamentally equilibrating because the actions of entrepreneurs move markets closer to a state of perfection. In this view, disequilibrium is created by exogenous changes in technologies, tastes and preferences, and the resultant market gaps and imperfections inherent to states of disequilibrium represent profit opportunities. Whether we believe that entrepreneurs create or exploit disequilibrium conditions, it is clear that entrepreneurs alter market conditions and market conditions motivate entrepreneurial action. Central questions of the field revolve around the nature of disequilibrium, the economic opportunities inherent therein, the means of exploiting such states, and the effect of the entrepreneur on market conditions and social welfare.
Disequilibrium · Economic system · Economics · Entrepreneurship · Exploit · Market economy · Microeconomics · Profit (economics) · Economic Theory and Institutions · Entrepreneurship Studies and Influences · Finance · Firm Innovation and Growth
| Highly cited | No |
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