Entrepreneurship, Compensation, and the Corporation

Manne, Henry

Abstract

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Entrepreneurship, Compensation, and the Corporation

Henry G. Manne

George Mason University School of Law

May 27, 2011

Quarterly Journal of Austrian Economics, Vol. 14, No. 1, pp. 3-24, 2011

Abstract:
This paper revisits the concept of entrepreneurship, which is frequently neglected in mainstream economics, and discusses the importance of defining and isolating this concept in the context of large, publicly held companies. Compensating for entrepreneurial services in such companies, ex ante or ex post, is problematic – almost by definition – despite the availability of devices such as stock and stock options. It is argued that insider trading can serve as a unique compensation device and encourage a culture of innovation.

Number of Pages in PDF File: 22

Keywords: Entrepreneurship, Compensation, Corporation, Innovation, Insider Trading

JEL Classification: D82, D83, J33, K22, L26, M12, M52

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Date posted: May 31, 2011

Suggested Citation

Manne, Henry G., Entrepreneurship, Compensation, and the Corporation (May 27, 2011). Quarterly Journal of Austrian Economics, Vol. 14, No. 1, pp. 3-24, 2011. Available at SSRN: http://ssrn.com/abstract=1854661

Contact Information

Henry G. Manne (Contact Author)

George Mason University School of Law ( email )

3301 N. Fairfax Drive
Arlington, VA 22201
United States