New perspectives on economic development: A human agency by Fu-Lai Tony Yu

By Fu-Lai Tony Yu

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Whenever the expectations resulting from the existing interpretation are disappointed, or when beliefs so far held are disproved by new experience, then re-interpretation or reclassification occurs. The whole process of entrepreneurial learning, of the growth of knowledge, is then seen as consisting of such re-interpretation or reclassification, as a process in which our ‘frame of reference’ is corrected, adjusted, or refined (Vanberg 1994: 97). 7 Competition, market selection and coordination Entrepreneurs’ subjective interpretation of incoming events and the choice of an option are subject to market tests.

2, 73-94. Gifford, S. (1992) Allocation of Entrepreneurial Attention. Journal of Economic Behavior and Organization, vol. 19, 265-283. Goffman, E. (1969). The Presentation Of Self In Everyday Life. Garden City, NY, USA: Doubleday. H. and N. Rosenberg (2010) Handbook of the Economics of Innovation. New York, USA: Elsevier. A. (1994) A New Approach to Modelling Endogenous Learning Processes in Economic Theory. In: P. Boettke, I. Kirzner and M. ) Advances in Austrian Economics I. Greenwich, USA: JAI Press, pp.

7 Competition, market selection and coordination Entrepreneurs’ subjective interpretation of incoming events and the choice of an option are subject to market tests. Market selection in economics consists of three parts: variation, selection, and retention. Variation occurs through entrepreneurship. Selection will typically occur through the realization of profit and loss. In the filtering process, those options yielding profits will be selected while those options leading to losses will be eliminated.

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