Entrepreneurial Discovery and the Demmert/Klein Experiment: Another Attempt at Creating the Proper Context

Entrepreneurial Discovery and the Demmert/Klein Experiment: Another Attempt at Creating the... Friedrich Hayek conjectured that the free enterprise system is the most effective in making discoveries, and Israel Kirzner refines the conjecture by saying that profit opportunities evoke entrepreneurial discovery. Demmert and Klein (2003) present the first attempt to demonstrate the Hayek/Kirzner conjecture. On the whole, Demmert and Klein (2003) classify the results as disappointing but fruitful. In contrast we argue that additional experimental evidence might yield a demonstration of the conjecture. We continued the diligence and good-faith effort started by Demmert and Klein (2003) to devise an experimental setting that would create a genuine context for entrepreneurial discovery, yet the conjecture eludes our efforts at controlling the experiment. We duplicated the experiment at a Business School in Germany, with two simple variations. First, Demmert and Klein (2003) recruited only male students. We include male and female students. Second, Demmert and Klein (2003) used a payment schedule that includes a flat rate for participation and additional earnings depending on the presented performance. We drop the flat rate and slightly reduce the earnings per unit outperformance. Our results show that overall money matters. Our results are rather like those of Demmert and Klein (2003) and do not seem to be influenced by a baseline payment. Moreover, there are gender specific divergences showing male students earning significant higher additional earnings than their female fellow students. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Review of Austrian Economics Springer Journals

Entrepreneurial Discovery and the Demmert/Klein Experiment: Another Attempt at Creating the Proper Context

Loading next page...
 
/lp/springer_journal/entrepreneurial-discovery-and-the-demmert-klein-experiment-another-0IWNAQwDom
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2005 by Springer Science + Business Media, Inc.
Subject
Economics; Public Finance; Political Science; History of Economic Thought/Methodology
ISSN
0889-3047
eISSN
1573-7128
D.O.I.
10.1007/s11138-005-6825-2
Publisher site
See Article on Publisher Site

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches

$49/month

Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.

$588

$360/year

billed annually
Start Free Trial

14-day Free Trial