Show or hide comments about the document.
Search over the document's text.
Share the document through social networks or e-mail.
After selecting an area on the page.
...you can:
copy the text
share the segment
comment
cite the document

Summer 2018

ISSN 0890-913X

Volume 33, Number 2

Entrepreneurial Errors in a Kaleidic Democracy

Simon Bilo, Arlington, VA

Download

e-mail

<< Back to editing
Previous version by
<< Older
Newer >>
Revert to this one

Edit
Cancel
Fullscreen

Show comments
Zoom:
Page: / 14

Line spacing:
Word spacing:

Search:FindClose

search results

TheJournalofPrivateEnterprise33(2),2018,53–66EntrepreneurialErrorsinaKaleidicDemocracySimonBilo*AlleghenyCollege______________________________________________________AbstractEconomicactivityisastreamofinterconnectedexperiments,wheresomeareboundtofail.Suchfailuresarecostlyandpolicymakersmightaspiretomitigatethem,particularlyduringeconomiccrises.Themitigationcanhappenintwoways:throughfurtherentrepreneurialexperimentationinthemarketprocessorthroughthepoliticalprocess.Whenthegoalistominimizeuncertaintyduringeconomiccrises,profit-seekingentrepreneurshipshoulddominatepoliticalaction.Thisisbecausewhilepeopleeasilyunderstandthatthegoalmotivatingentrepreneursistostayinbusinessandtokeeprevenuesabovecosts,thegoalsdrivingbureaucratsandpoliticiansarelesspredictable.______________________________________________________JELCodes:H11,H12Keywords:clustersoferrors,democracy,kaleidics,misallocations,uncertaintyI.IntroductionUncertainty,subjectivity,andpurposefulbehaviorarethreefeaturesofhumaninteractionthatconstrainpotentialmarketoutcomesbutalsopoliticianswhowanttoregulatetheseoutcomes.Thefeatures,however,playoutdifferentlyinthemarketarenawhencomparedtothepoliticalarena,andtheyleadtotwoseparateresponsepatternstothesametypeofevent,particularlytoaclusterofentrepreneurialerrors.Whereaspoliticalresponsesseemarbitrarytooutsideobserversandinjectintotheeconomyadditionaluncertainty,themarketgivespeopletheincentivesandtheknowledgetorespondtoerrorsinamoreconstrained—andthereforemorepredictable—patternofcreativity.Aslongastheoverarchingpolicygoalistominimizeeconomicuncertainty,usingtheterm“uncertainty”here*IthankRichardWagnerforvaluableconversationthatledtothispaper,andHarryDavidandparticipantsofthe2015annualmeetingoftheSouthernEconomicAssociationforvaluablecommentsandsuggestionsontheearlierdrafts.Iamresponsibleforallerrors.

GLIFOS-digital_archive

Metadata [hide]

Title	Entrepreneurial Errors in a Kaleidic Democracy
Authors/Creators:	Simon Bilo, Arlington, VA
Year:	2018
Volume:	33
Number:	2
Pages:	53 - 66
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	clusters of errors, democracy, kaleidics, misallocations, uncertainty

Citation:
Bilo, Simon / 2018. "Entrepreneurial Errors in a Kaleidic Democracy." The Journal of Private Enterprise, 33(2): 53-66.