We study the behavior of a firm that consistently maximizes a misspecified profit function. We provide an equilibrium concept where the misspecification error remains undetected. We examine the uniqueness and stability of the equilibria. The model of the price-taking firm belongs to this class....

The objectives of the paper are aimed at examining, identifying and elaborating the key points of overlapping and divergence of the ideas of the resource-based view of the firm and entrepreneurship. In the conditions when literature is not saturated related to the subject matter, the original...

This paper considers the consequences of a two-sector vertically-integrated model of firms producing output using firm-specific capital with a second sector producing firm-specific capital by adapting raw capital purchased in the market. Analysts rarely observe each sector separately....