Economic Organization and the Tradeoffs between Productive and Destructive Entrepreneurship.

The connection between entrepreneurship and economic organization is an under-researched topic in the economics of organization. This paper argues that key insights of the Austrian school of economics with respect to entrepreneurship and the nature and role of property rights and ownership may be useful ingredients in the economics of organization. Thus, we show that incorporating Austrian ideas allows to give new answers to such issues as who will be the principal and who will be the agent; how joint surplus in an productive relation will be split and who will own alienable assets.