Actually, it's "embedded" in real time, disequilibrium, decision making, where Kirzner is trying to clarify the meaning of "error." He states later on (p. 131) that "where ignorance consists not in lack of available information but in inexplicably failing to see facts staring one in the face, it represents genuine error and genuine inefficiency."
Further, (p. 132) "the market process is a process of the systematic discovery and correction of true error." And, "Scope for entrepreneurship...is present whenever error occurs" because error presents pure profit opportunities.
Samuel Bostaph, Ph.D.
Professor Emeritus of Economics
University of Dallas
"Government, taught Hume, is always government of the many by the few. Power is therefore always ultimately on the side of the governed, and the governors have nothing to support them but opinion.The struggle for freedom is ultimately not resistance to autocrats or oligarchs but resistance to the despotism of public opinion.--Ludwig von Mises
Presumably Kirzner’s statement quoted here must be embedded in some wider discourse involving (for example) path-dependency and/or transaction cost considerations that prevent one from simply changing one’s decision?
Dr Julian Wells
Director of Studies
Economics
Office: PR HH 0012
Phone: +44 (0)20 8417 2341
Principal lecturer in
economics
School of Economics, History and Politics
Faculty of Arts and Social Sciences
Kingston University
Penrhyn Road
Kingston-upon-Thames
KT1 2EE
United Kingdom
From: Societies for the History of Economics [mailto:[log in to unmask]] On Behalf Of Samuel Bostaph
Sent: 27 January 2014 14:36
To: [log in to unmask]
Subject: Re: [SHOE] Efficiency
Israel Kirzner presents an Austrian School view of "efficiency" in his Perception, Opportunity and Profit (Chicago: Univ. of Chi. Press, 1979), p. 120 as follows: "Inefficient action occurs when one
places oneself in a position one views as less desirable than an equally available alternative state." It is a result of error in decision making.
Samuel Bostaph, Ph.D.
Professor Emeritus of Economics
University of Dallas
"Government, taught Hume, is always
government of the many by the few. Power is therefore always ultimately on the side of the governed, and the governors have nothing to support them but opinion.The struggle for freedom is ultimately not resistance to autocrats or oligarchs but resistance to the despotism of public opinion.--Ludwig von Mises
Efficiency is a ambiguous concept in economics, I would have a speech in the Eastern Economic Association Annual Meetings, in Boston.My speech would focus on efficiency in the view of economic thought.I would try to rational reconstruct the efficiency through emergent property.I wonder how efficiency has been used in the history of economics.Your assistance will be appreciated.
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