Rent And Resources: A Market Process Perspective (1999)
| Citations: | 8 - 1 self |
BibTeX
@MISC{Lewin99rentand,
author = {Peter Lewin and Steven E. Phelan and Helpful Comments and Particularly Mario Rizzo and Frederic Sautet and Israel Kirzner and Bill Butos and David Harper},
title = {Rent And Resources: A Market Process Perspective},
year = {1999}
}
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Abstract
Two strategic perspectives are analyzed, the neoclassical microeconomic perspective (using the Ricardo-Marshall approach to rent) and the Market Process perspective (using the Fetter approach to rent). In a neoclassical world, rents indicate "unsolved" or unexploited "inefficiencies" as every hypothetical outcome is viewed against the standard of perfect competition. By contrast, in the market process world there is no single ideal standard by which to measure any particular outcome. All action takes place in an open ended universe in which the future is continually being created, in which, competition is a "discovery process." A market process approach is not only more "realistic," it is better suited to the Resource-Based Theory of corporate and business strategy. 3 Rent and Resources: A market process perspective Introduction: Resource Based Theory and Rents The new resource based theory (RBT) of the firm relies, in many ways, on economic foundations. It takes as its point of d...
