Toward a theory of entrepreneurial rents: A simulation of the market process
While strategy theory relies heavily on equilibrium theories of economic rents such as Ricardian and monopoly rents, we do not yet have a comprehensive theory of disequilibrium or entrepreneurial rents. We use cooperative game theory to structure computer simulations of the market process in which a...
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Published in | Strategic management journal Vol. 36; no. 1; pp. 76 - 96 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Chichester, UK
John Wiley & Sons, Ltd
01.01.2015
John Wiley & Sons Wiley Periodicals Inc |
Subjects | |
Online Access | Get full text |
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Summary: | While strategy theory relies heavily on equilibrium theories of economic rents such as Ricardian and monopoly rents, we do not yet have a comprehensive theory of disequilibrium or entrepreneurial rents. We use cooperative game theory to structure computer simulations of the market process in which acts of creation and discovery disequilibrate and equilibrate the market over time. Using simulation experiments, entrepreneurial rents can be isolated from structural rents by keeping initial structural advantages constant. We impute entrepreneurial rents to underlying actions of creation and discovery under various combinations. Our results have relevant implications for entrepreneurship strategy, particularly for firm boundaries and resource allocation decisions. |
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Bibliography: | Natural Sciences and Engineering Research Council (NSERC) of Canada for Discovery Grant - No. #341679-2007 Social Sciences and Humanities Research Council (SSHRC) of Canada for Standard Research Grant - No. #410-2011-1004 ArticleID:SMJ2203 istex:68A5BACBED6F32B198231BB92CBF74E74FCC1E96 ark:/67375/WNG-9N61GMJ3-1 Additional supporting information may be found in the online version of this article. ObjectType-Article-1 SourceType-Scholarly Journals-1 ObjectType-Feature-2 content type line 23 |
ISSN: | 0143-2095 1097-0266 |
DOI: | 10.1002/smj.2203 |