An Austrian Theory of the Firm

The modern Theory of the Firm uses the concept of rent and makes implicit assumptions about equilibrium. An Austrian (Market Process) Theory of the Firm should have something to say about each of these. Two strategic perspectives are analyzed, the neoclassical microeconomic perspective (using the Ricardo-Marshall approach to rent) and the Market Process perspective (using the Fetter approach to rent). In a neoclassical world, rents indicate unsolved or unexploited inefficiencies as every hypothetical outcome is viewed against the standard of perfect competition. By contrast, in the Market Process world there is no single ideal standard by which to measure any particular outcome. All action takes place in an open ended universe in which the future is continually being created, in which competition is a discovery process.     

Deals inside: examining restaurant operators’ motives when choosing whether to offer a flash-sale

As restaurants are the primary hospitality business represented on flash-sale sites, this study examined motivations of restaurant managers when choosing whether to utilize the promotional mediums of flash-sales. Interviews were administered as a measurement instrument. Results demonstrated restaurants which have employed flash-sales are weary of the likelihood of success and believe the flash-sales brought in established customers. Non-users indicated hesitation towards adoption of flash-sales related to low profit margins per item in their operation and the percentage split of the sale price between the firm and flash-sale provider. Findings provide keen foundational insight into the flashsale phenomenon.     

Michael Augspurger. An Economy of Abundant Beauty: Fortune Magazine and Depression America. Ithaca, N.Y.: Cornell University Press, 2004. viii + 292 pp. ISBN 0-8014-4204-4, $34.95 (cloth).

A curious blend of business and intellectual history, with anemphasis on the latter, Michael Augspurger’s An Economyof Abundant Beauty offers a reading of Fortune magazine fromits founding in 1930 through the election of Dwight D. Eisenhowerin 1952. Distancing himself from other observers of the publicationwho have interpreted Fortune’s heavy coverage of highculture and aesthetics during the 1930s alongside more prosaicbusiness news as the result of a distinct split between a progressivestaff of writers, including James Agee and Archibald MacLeish,and more conservative editors and publisher Henry Luce, Augspurgerclaims to discern a     

A review of Technology Education in Ireland; a changing technological environment promoting design activity

In Ireland, Technology Education’s structure and organisation across the levels of education is not delivered or governed in a coherent manner. Technology Education in primary level education, for students between 5 and 12 years of age, does not explicitly exist as a separate subject. In primary level education, Social, Environmental and Scientific Education (Science), encourages a child to examine and appreciate how technology and science impacts on their lives and the environment. It supports children developing design and make skills, and to apply scientific ideas to everyday situations and practical problems (DES in Primary school curriculum, science. Social, environmental and scientific education curriculum, 1999). In addition, various initiatives such as the Junior Lego League, supported by the Galway Education Centre, facilitate various perspectives of Technology Education. In second level education, which this paper primarily focuses on, Technology Education exists as a suite of eight subjects, for students of 12–18 years of age. In third level education students can choose from a wide range of bachelor degree programmes in science, technology, engineering or maths. The degree programmes available at third level also include programmes in initial teacher education (ITE). These programmes in initial teacher education are offered by two institutions, and graduate second level teachers to service the second level system. Technology Education in second level education was first introduced to Ireland in 1885. Since this introduction, revisions and changes have occurred, in both the Irish economy and syllabi. In 2006, Technology Education syllabi were revised to include more design activity at senior cycle. These changes reflect the forward thinking of policy makers in reflection of the progression from the industrial era to the information era to the conceptual era. The scope of second level Technology Education in an Irish context is still perceived by many as vocational, though progressive reformations are advancing towards a design-driven framework, grounded in a strong craft practice. This changing technological environment has resulted in the promotion of design activity in second level Technology Education in Ireland. This paper reviews the establishment of design education in Technology Education in the Irish second level education context, where an epistemological shift towards design activity has occurred.     

Ordinaries

Journal of Bioeconomics - The Ordinaries column began in 2019 to promote a Neo-Darwinian synthesis of neoclassical and behavioral economics. This article places already-published, as well as...     

Austrian theories of entrepreneurship: Insights from complexity theory

This paper examines various Austrian theories of entrepreneurship through the lens of complexity theory, more specifically via the concept of a dancing fitness landscape. Problems in many fields (including economics) can be characterized as attempting to find the highest peak on a fitness landscape (which corresponds to an efficient or optimal resource allocation). A rugged fitness landscape is one characterized by many peaks and troughs, while a dancing fitness landscape is one where the peaks and troughs change over time due either to exogenous or endogenous activity. I argue that several key disagreements among Austrian economists can be better understood through the metaphor of a fitness landscape. The implications of this insight for various branches of Austrian economics are also considered. This study is timely as radical Austrian views are starting to percolate into business schools leading to increased debate among management scholars about the precise nature of the entrepreneurial process (Chiles et al. 2007; Sarasvathy and Dew 2008; Alvarez et al. 2010).     

DIMENSIONALITY AND DISAGREEMENT: ASYMPTOTIC BELIEF DIVERGENCE IN RESPONSE TO COMMON INFORMATION

We provide a model of boundedly rational, multidimensional learning and characterize when beliefs will converge to the truth. Agents maintain beliefs as marginal probabilities instead of joint probabilities, and agents' information is of lower dimension than the model. As a result, for some observations, agents may face an identification problem affecting the role of data in inference. Beliefs converge to the truth when these observations are rare, but beliefs diverge when observations presenting an identification problem are frequent. Robustly, two agents with differing priors who observe identical, unambiguous information may disagree forever, with stronger disagreement the more information received.     

The Political Economy of Addressing the Climate Crisis in the Earth System: Undermining Perverse Resilience

The Earth system is a complex adaptive system, characterised by non-linear change and with significant capacity for surprise. In times of systemic crisis, such as dangerous anthropogenic climate change, perverse resilience (for example the structural power of fossil fuel interests in the global economy) can threaten overall Earth system stability. Critical political economic analysis recognises climate change as a threat with significant political economic characteristics and implications. However, key dimensions of climate change as a globally coherent phenomenon, including the important implications of Earth system dynamism and non-linear change, can remain unrecognised, mischaracterised or underestimated. In contrast, resilience approaches describe social-ecological systems but neglect the significance of norms and power relations in human societies. This article builds theory by linking key concepts – hegemony and resilience – from neo-Gramscian political economic analysis and resilience approaches to social-ecological systems. Our objective is to generate a new conceptual framework to improve understanding of the role of politics in social-ecological systems. We use climate change and its mitigation to demonstrate the new framework's potential.