Understanding the market dynamics of entrepreneurial networks

Abstract

Austrian economic explanations of market processes have gained considerable attention by management researchers. A central tenet of the Austrian school is that non-equilibrium market processes are primarily attributed to the subjective behaviors of entrepreneurs. Yet, human actions are not only determined by entrepreneur's unique preferences and experiences, but they are also determined by the actions of connected others. As a result, subjective explanations of market processes are extended to account for the social relationships of human action. A conceptual model that underscores the social networks of subjective and alert entrepreneurs was developed and examined in an agent based-simulation setting. The contributions and implications of this study are also discussed.