Towards A Game-Theoretic Model of Entrepreneurial Economies



It has proven difficult to integrate entrepreneurs into a microeconomic theory that is fundamentally unconcerned with individual contributions. Where attempts are made to introduce the entrepreneur, central facts of empirical research are not accounted for. We are developing a game-theoretic approach to entrepreneurial economies that is flexible and descriptive enough to accommodate empirical realities. In this talk, we explain the basic model and its capacity to reflect the key ideas in entrepreneurship research. We solve a simple case and discuss more general solutions as well as an application to business cycle volatility. Our work is preliminary, but it forms a basis for a promising, perhaps inevitable, research agenda that we hope to discuss with you.
Contact information:
Anka K. Bachanek