Towards an Austrian Perspective on the Firm

Towards an Austrian Perspective on the Firm Review of Austrian Economics, 11: 77–97 (1999) ° c 1999 Kluwer Academic Publishers STAVROS IOANNIDES ne of the distinguishing characteristics of Austrian economics has always been its concern with the role of institutions in economic activity. To this day, however, Austrian ideas have remained largely marginal relative to the rising school of New Institutional Economics. More specifically, as Loasby (1989), Langlois (1992) and Foss (1994, 1996) have noted, Austrian economists have never at- tempted to produce an Austrian theory of the firm. The purpose of the paper is to explore what such an Austrian perspective on the firm would have to look like, in order to be acceptable both as “Austrian” and as a “theory of the firm”. First of all, such an Austrian perspective must be capable of describing the firm as an institution that is created through the entrepreneurial action of individuals; an action which is subjectively motivated and carried out in conditions of radical uncertainty and ignorance. Taking Israel Kirzner’s theory of entrepreneurship as the starting point of our analysis, we will attempt to develop a theory of the firm on the basis of Kirzner’s notion of entrepreneurial behavior. Secondly, to count as a “theory of The Review of Austrian Economics Springer Journals

Towards an Austrian Perspective on the Firm

Loading next page...
Kluwer Academic Publishers
Copyright © 1999 by Kluwer Academic Publishers
Economics; Public Finance; Political Science; History of Economic Thought/Methodology
Publisher site
See Article on Publisher Site


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


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.



billed annually
Start Free Trial

14-day Free Trial