Market Process and the Firm: Some Indications of Rule-following and Entrepreneurship Under Genuine Uncertainty

Kaisla Jukka

    Research output: Working paperResearch

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    This paper examines the nature of genuine uncertainty and rule-following behaviour and suggests some implications for the theory of the firm. The firm is seen here as emerging as a means to manage some of the experienced uncertainty. The nature of the firm is perceived as an evolving institution creating predictability both inside the firm and in the market. But because of the spontaneous nature of life-world, social processes remain open-ended. This subjectivist perspective cannot assign any particular premeditated purpose to the spontaneous order which emerges through the market process. The
    process is not kaleidic but nor is it considered to be moving toward increasing efficiency either. Rules and institutions provide predictability to the extent that novelties can be introduced to the process. Discoveries do not, however, only introduce new outcomes in the market process, they also change the rules of the game.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherDRUID - Danish Research Unit for Industrial Dynamics
    Number of pages32
    ISBN (Print)8778730554
    Publication statusPublished - 1998
    SeriesDRUID Working Paper

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