The mathematics of "computable economics" proves that entrepreneurship policy is unlikely to succeed if it presumes policy makers can replace the unplanned results of the entrepreneurial market process with ex ante judgments about which enterprises are best. It is mathematically impossible for policy makers or their assignees to make the required computations of opportunity costs. Some business professors dream of finding a grand algorithm that will allow them to guide entrepreneurial decisions and to judge in advance which decisions are good and which bad. The logic of computable economics, however, reveals this dream to be a form of magical thinking.
|Original language||English (US)|
|Number of pages||8|
|Journal||Entrepreneurship: Theory and Practice|
|State||Published - Sep 5 2008|
ASJC Scopus subject areas
- Business and International Management
- Economics and Econometrics