The Market Process Theory And The Entrepreneur Theory Of The Austrian School

The market process theory and entrepreneur theory are formed by the Austrian school in the continuous advancement of representatives such as Mises,Hayek and Kirzner.Market process theory first disprove the hypothesis and the Walras' solution of general equilibrium theory,and they think the market is not static,any economic behavior is not in fixed time and environment,so in economic research anyone who will draw out time is inappropriate.If the concept of time included in the market,then we shall find that the past will affect the environment in the future,and the environment will in turn affect people's behavior.So the market is actually a process of constant change.And in the process of market changes,there are such kind of people,they can find potential knowledge or information which is not discovered by the people,and can be applied to the market competition to gain the profit to outshine others,this kind of group are called entrepreneurs by the Austrian school.The essence of the entrepreneur is the social function of trying to find out the extraordinary profit through effort in a market where information is incomplete and the general balance can't come true.By constantly discovering new knowledge,improving production methods and optimizing resource structure,they keep the economy moving forward.In this way,the market process theory and entrepreneur theory can fully explain the source of economic development.This paper,starting from the contradiction of the Austrian school's market process theory and general equilibrium theory of the new classical economics,rejected the general equilibrium theory assumption from the perspective of market,and then raises the market process theory and entrepreneur theory.Then it introduces the methodology of Austrian school subjectivism,individualism and human ethology,which is also the analysis method of market process theory and entrepreneur theory.Then the market process theory and entrepreneur theory are introduced in detail.Market process theory is introduced,from the perspective of the comparison with general equilibrium,and then along the Mises,Hayek and Kirzner for the continuous development of the theory and perfect process,analyses the market process theory,and raises the entrepreneur theory.The introduction of the Entrepreneur theory includes three aspects:the definition of entrepreneur,entrepreneurial spirit,and the beat competition.This paper mainly introduces the characteristics that entrepreneurs discover new knowledge and information of through their own vigilance,and use them for market competition,which promotes economic development at the same time.Finally,this paper analyzes the market process theory and entrepreneurship in the "mass entrepreneurship and innovation." and "market plays a decisive role in the allocation of resources" on the two problems around the current situation of the economic development of our country at present stage,from the perspective of the two theories and points out the contributions and shortcomings of the two theories.