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The Business Model as an Equilibrium Concept of the Market-Making Entrepreneur

On 16th April 2018 (1-2pm) Prof. Dr. Matthias Raith, professor at the chair of Entrepreneurship at the Otto-von-Guericke University Magdeburg, will give a presentation about “The Business Model as an Equilibrium Concept of the Market-Making Entrepreneur” in Q4.245. Afterwards, Mr. Raith will be available for questions and discussions. His presentation is part of:



In this paper, we formally characterize the self-sustainable business model as an equilibrium concept of the market-making entrepreneur, which is particularly relevant for the satisfaction of social needs, where markets often fail to exist. Our theoretical approach thus acknowledges the equilibrium role of the business model in economic theory. Contingent on the focus of the social mission and the market orientation of the venture, we develop a typology of social business model archetypes for social as well as commercial markets and with a focus on social provision as well as social integration. For each strategic orientation, the typology points out the ideal type of business model.

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