Creativity in a Theory of Entrepreneurship

43 Pages Posted: 29 Nov 2016 Last revised: 15 Nov 2018

See all articles by James Caton

James Caton

North Dakota State University - Department of Agribusiness and Applied Economics; American Institute for Economic Research; North Dakota State University - NDSU Center for the Study of Public Choice and Private Enterprise

Date Written: November 26, 2016

Abstract

I construct an economic agent in light of literature discussing entrepreneurship and creativity and apply this construction to an agent-based model. I use a heuristic rendition of Sugarscape (Epstein and Axtell 1996; Wilensky 1999) to show that creativity is generated by the agent and is regulated by a system subject to competitive pressures. Agents have some array of strategy structures and parameters that they alter by experimentation. When a system reaches a persistent state, creativity, as defined by this experimentation, settles to a relatively low level. However, if this system is upset by an exogenous shock, the agents must reorient themselves to the new environment by a process of trial and error in order to form a new regime of coordination.

Keywords: Entrepreneurship, Agent-based Computational Economics, Schumpeter, Kirzner

Suggested Citation

Caton, James, Creativity in a Theory of Entrepreneurship (November 26, 2016). NDSU Public Choice and Private Enterprise Research Paper No. 18-5. Available at SSRN: https://ssrn.com/abstract=2876175 or http://dx.doi.org/10.2139/ssrn.2876175

James Caton (Contact Author)

North Dakota State University - Department of Agribusiness and Applied Economics ( email )

Fargo, ND 58105
United States

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
United States

North Dakota State University - NDSU Center for the Study of Public Choice and Private Enterprise

811 2nd Ave N.
Fargo, ND 58102
United States

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