Amimetic assets and persistent profits under competition
Robert Gmeiner ()
Additional contact information
Robert Gmeiner: Scholar, Sunwater Institute
The Review of Austrian Economics, 2021, vol. 34, issue 2, No 4, 253-277
Abstract Some industries are very dynamically competitive and characterized by much entrepreneurial innovation. Others are oligopolistic and still others are known for state favors and regulatory rents. In a market economy, competitive pressures cause businesses to continually adapt to changing conditions. Different approaches can be taken – entrepreneurial innovation, consolidation, and rent seeking are examples. This paper examines the characteristics of firms and productive assets that preserve an innovative, dynamic economy and hedge against rent seeking and crony capitalism. In an innovative, dynamic economy, profits can only be sustained against competition if a business has productive assets that offer a unique advantage over competitors. These assets can be termed amimetic assets, a term based on the Greek word amimitos, meaning “inimitable.” When these assets can be acquired or developed through entrepreneurial discovery, business models can be oriented to exploit them. If this is more difficult in an industry, it will be more likely to be characterized by regulation and regulatory rents. Amimetic assets are thus fundamental to an innovative economy and are a major factor among many in determining whether a business obtains profits through repeated entrepreneurial discovery or rent seeking.
Keywords: Innovation; Rent seeking; Property rights; Entrepreneurship; Dynamic competition; D21; D23; M21; O31; P14 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11138-019-00470-z Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:revaec:v:34:y:2021:i:2:d:10.1007_s11138-019-00470-z
Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11138/PS2
Access Statistics for this article
The Review of Austrian Economics is currently edited by Peter Boettke and Christopher Coyne
More articles in The Review of Austrian Economics from Springer, Society for the Development of Austrian Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().