Firms need to act entrepreneurially to compete in today ultra-competitive business environment. This requires firms to actively search for and exploit opportunities to increase revenues or decrease costs in an uncertain environment. Within a firm, these activities are the functions of the entrepreneur or the entrepreneurial resources. In return for their services, these resources receive payments known as entrepreneurial rents. These rents are the result of subjective judgments and the activities that generate them are subject to imitation. Thus, entrepreneurial rents are both ex ante non-contractible and temporary. These characteristics make their measurement difficult for managers. This paper is an attempt to measure entrepreneurial rents using a system dynamics framework. System dynamics models are uniquely positioned to capture the dynamic complexities of these rents. In doing so, I present a SD model of a three-site hog production operation and compute the entrepreneurial rents generated from several arbitrage and innovation activities.

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Date created

• 2005 July 17-2005 July 21

Type

• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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cc5bb0ac12a5b68b26b1583548898dae

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Collection

System Dynamic Society Records

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Collecting area

• This collection is part of the University Archives