Neoclassical Equilibrium Theories
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Equilibrium theories assume that markets are composed of maximizing agents whose collective decisions about proces clear markets. In this framework no one can discover a misalignment that would generate an advantage because all opportunities already have been recognized. This frameworks explains entrepreneurship purely by identifying individuals who want to be an entrepreneur. This may be due to preference for certainty / uncertainty.
In short:
- Everyone can recognize all entrepreneurial opportunities
- Personality attributes, rather than opportunity recognition, determine who will become an entrepreneur.
Part of: Entrepreneurial theories
