The Firm and Strategic Factor Markets: Analyzing the Role of the Firm in the Creation of and Pricing in Factor Markets
14 Pages Posted: 29 Jan 2011
Date Written: January 31, 2010
The theory of imputation, as analyzed and elaborated on by influential thinkers in the Austrian school of economics, tends to explain how prices of factors are "imputed" from prices of consumer goods and, more specifically, how consumers value products and services offered in the market. However, the theory of imputation explains this process in already existing markets for capital goods and factors. This paper extends the theory through attempting to explain how such markets arise, and more specifically what the role of the entrepreneur and the firm are in this process.
Keywords: Factor Prices, Imputation, Entrepreneurship, Theory of the Firm
JEL Classification: M13, D21, D49, L11, L22
Suggested Citation: Suggested Citation