early economic thinkers and classic works such as Cantillon (1755) Knight (1921) and Kirzner
(1973). The paper opens by explaining how uncertainty and thus entrepreneurship disappeared
from microeconomic theory as it became increasingly formalized (and stylized). It then goes on
to bring the entrepreneur and entrepreneurial decision-making back into economic theory by
focusing on the interrelationships among actors knowledge and perceived economic
opportunities using a resource-based framework. The third paper in this section (Chapter 4) is
by Foss and Klein Entrepreneurship and the Economic Theory of the Firm: Any Gains from Trade?
Foss and Klein strongly link theories of the firm to entrepreneurship arguing a fundamental
and intrinsic connection between the two. They like Mahoney and Michael explain how
entrepreneurship became less important in economic models as the general equilibrium model
became dominant. Foss and Klein ask: Does the entrepreneur need a firm? They focus on the
judgment of the entrepreneur and suggest that this judgment is exercised through asset
ownership and starting a firm. Foss and Klein further argue that it is through this notion of
judgment that heterogeneous assets combine to meet future wants.
