Breaking Out of the Kirznerian Box: A Reply to Sautet

Review of Austrian Economics, Forthcoming.

31 Pages Posted: 8 Jul 2021

See all articles by Matthew McCaffrey

Matthew McCaffrey

University of Manchester - Manchester Business School

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation

Peter G. Klein

Baylor University - Hankamer School of Business; Norwegian School of Economics (NHH) - Department of Strategy and Management; Ludwig von Mises Institute

Joseph T. Salerno

Ludwig von Mises Institute; Auburn University ; Pace University - Lubin School of Business

Date Written: June 23, 2021

Abstract

What is now called the judgment-based approach to entrepreneurship (JBA) has a rich pedigree in Austrian economics and continues to grow rapidly in that tradition as well as in various research fields in business and management. The JBA has also attracted some criticisms. Frédéric Sautet’s recent review essay is an example. Sautet’s main concern is that the JBA rejects Israel Kirzner’s alertness/discovery approach which, in Sautet’s view, provides a more compelling basis for theorizing. Unfortunately, we do not find Sautet’s criticisms of the JBA convincing. They frequently ignore our arguments about entrepreneurial judgment and its manifestation in the business firm, fail to address our criticisms of the alertness/discovery approach, and are rooted in a flawed understanding of the history of economic thought.

Keywords: Entrepreneurship, theory of the firm, judgment, uncertainty, opportunity, ownership, Ludwig von Mises, Israel Kirzner

JEL Classification: B25, D21, D81, G32, L26

Suggested Citation

McCaffrey, Matthew and Foss, Nicolai J. and Klein, Peter G. and Salerno, Joseph T., Breaking Out of the Kirznerian Box: A Reply to Sautet (June 23, 2021). Review of Austrian Economics, Forthcoming., Available at SSRN: https://ssrn.com/abstract=3872675

Matthew McCaffrey (Contact Author)

University of Manchester - Manchester Business School ( email )

United Kingdom

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilen
Frederiksberg, 2000
Denmark

Peter G. Klein

Baylor University - Hankamer School of Business ( email )

Waco, TX 76798
United States
254-710-4903 (Phone)

Norwegian School of Economics (NHH) - Department of Strategy and Management ( email )

Breiviksveien 40
N-5045 Bergen
Norway

Ludwig von Mises Institute ( email )

Auburn, AL
United States

Joseph T. Salerno

Ludwig von Mises Institute ( email )

Auburn, AL
United States
3343212113 (Phone)

HOME PAGE: http://www.mises.org

Auburn University ( email )

415 West Magnolia Avenue
Auburn, AL 36849
United States

Pace University - Lubin School of Business ( email )

1 Pace Plaza
New York, NY 10038-1502
United States

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