Breaking Out of the Kirznerian Box: A Reply to Sautet
Review of Austrian Economics, Forthcoming.
31 Pages Posted: 8 Jul 2021
Date Written: June 23, 2021
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: Suggested Citation