Embodied entrepreneurship: A sensory theory of value

International audienceIn this chapter, we introduce a sensory theory of value (STV) in the context of entrepreneurship. Our theory originates in Friedrich Hayek's seminal work that brought together neurophysiology and political economics. Three main elements will be discussed in light of recent developments in economic, cognitive and brain sciences. First, we argue that STV is a theory of mind when applied to the behaviour of the entrepreneur on the market. Indeed, as a person the entrepreneur is an innovator. He is therefore imitated by his peers –as well as many other actors of the market- because of the intentions and beliefs they attribute to him. To analyze this specific process, we refer to Hayek's views on imitation, more specifically the concepts of “sensory” and “spontaneous” orders. Second, we show that determining market prices, as a cognitive mechanism, provides information on the behaviour of the entrepreneur himself since it results from (1) private information that he is the only one to possess, (2) beliefs that other people think he has and (3) implicit knowledge shared by all actors on the market. Finally, we discuss the relevance of considering (and studying) prices as sensory data through recent advances in the fields of motor cognition, social coordination dynamics and neuroeconomics