Now entrepreneurship classes are all the rage. While in real life government strangles businesses large and small everyday, the academic community has finally woken up to what creates wealth—entrepreneurial activity. This is a positive sign. And again it is an advancement for Austrian economics, as it has been the Austrian school that has focused on the role of the entrepreneur in the market process, while other schools of thought haven’t recognized the role of entrepreneurs at all.
Foss and Klein recognize entrepreneurship as judgmental decision making under uncertainty. They show how judgement is the driving force of the market economy and that to understand the performance of a firm, its managers, and organization, the acumen of entrepreneurs and managers must be analyzed and dissected.
Nicolai Juul Foss is Professor of Strategy at the Department of Strategy and Innovation at the Copenhagen Business School (CBS).
In their classic text Organizations, James March and Herbert Simon present a sympathetic reading of the Austrian — mainly Hayekian — positions in the socialist calculation debate.
Peter G. Klein is Carl Menger Senior Research Fellow of the Mises Institute and W. W. Caruth Chair and Professor of Entrepreneurship at Baylor University’s Hankamer School of Business.
The Theory and Method faculty panel takes questions from Mises University students.
Strip away the mystique and ChatGPT is a next-word predictor with some randomness—the same trick as the spell-checker asking if you meant "dog." Peter Klein on the economics of AI, minus the hype.
