This paper investigates two different approaches to the analysis of institutions using game theory and discusses their methodological and theoretical implications for further research. Starting from von Neumann and Morgenstern's theory, we investigate, how Schotter and Schelling's approaches to...

Institutions matter both for long-term economic evolution as well as for more short-termed economic performance. The law is particularly important in shaping the institutional framework for economic activities. This paper gives an overview of typical evolutionary explanations of legal change,...

Israel M. Kirzner is the 2006 winner of The International Award for Entrepreneurship and Small Business Research. In this essay, we present and evaluate his main contributions to the economics of entrepreneurship. The focus is on how Kirzner defines the entrepreneurial function. In order to...

Israel M. Kirzner is the 2006 winner of The International Award for Entrepreneurship and Small Business Research (the FSF-Nutek Award). In this Prize Lecture he argues that a number of those who have commented on his work have misunderstood certain aspects of his theoretical system, and as a...

Klasik gelenek, konjonktür dalgalarını piyasa mekanizmasının kendiliğinden ortadan kaldırabileceği geçici sapmalar olarak değerlendirirken; kapitalizmin doğası gereği istikrarsız olduğunu kabul eden Keynesçi gelenek, aktivist politikalarla konjonktür dalgalarının önlenmesi...

The global economy has performed very poorly since the onset of the crisis in 2008. This paper argues that easy monetary policy has actually worsened economic prospects to date, being based on a fundamental, ontological error. The economy is not an understandable and controllable machine as...

Supporters of the Austrian School of Economics and a number of empirical studies have claimed that the increasing number of "zombie" companies is a supply-side reason for the low growth rates in Europe. Often, these studies cite empirical findings for Japan to justify their claims, and conclude...

In this article I argue that the study of contextual issues in economics has been limited in its scope because economists have mostly conceived of the environment as a constraint on individual action. I identify and discuss three conventions that pull economists into such conceptualization of...

Carl Menger's Principles of Economics is one of the pillars of modern economics. It was neither ignored nor disregarded at the time of its publication, as some narratives suggest. Commentaries in journals and newspapers show a broad and auspicious reception, in no way an indifferent one. This...

Friedrich Hayek has been one of the dominating intellectual figures of the 20th century. Hayek, together with Gunnar Myrdal, received the 1974 Nobel Memorial Prize in economics, for "their pioneering work in the theory of money and economic fluctuations and for their penetrating analysis of the...