August 31, 2012

Legal Entrepreneurship within Alternative Systems of Political Economy

  • Richard Wagner

    Distinguished Senior Fellow, F. A. Hayek Program for Advanced Study in Philosophy, Politics and Economics
  • Shruti Rajagopalan

    Senior Research Fellow
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Entrepreneurship is present in all economic systems. It is the source of change in society. While entrepreneurship is ubiquitous, its particular qualities depend on the system of political economy in which it occurs. A system of political economy can be conceptualized as entailing interaction among market, political, and legal sub-systems. This paper focuses on legal entrepreneurship, recognizing that the three sub-systems are interdependent. As a formal matter, all entrepreneurship is activated by a search for gain. As a substantive matter, the content of entrepreneurial action will differ depending on the system of political economy in which it occurs. This paper compares the substantive qualities of legal entrepreneurship in common law tradition within systems of liberal democracy and social democracy.

Read the working paper at SSRN.com.