Dynamic Equilibrium Process and Dynamic Resource Based View

I present dynamic RBV and dynamic equilibrating process with the pattern recognition models 10 and entrepreneurial subjectivism. Opportunity is defined into two ways; value creating chance in RBV, 11 and equilibrating or dis-equilibrating chance in Austrian economics. According to pattern recognition 12 model with subjectivism, individual agents recognize opportunity with their own subjective cognitive 13 pattern based on their unique experiences and knowledge. Since subjective patterns are continuously 14 updated with agents’ new experiences and knowledge in the dynamic market, opportunities are also 15 continuously developed with the new subjective patterns. Among the individual agents, entrepreneurs 16 who have superior ability to recognize opportunity are only able to execute opportunity. Entrepreneurs’ 17 subjective patterns are updated and their ability of recognition is enforced in the dynamic market. 18 Therefore, firm’s competitive advantage is sustained, and market is on dynamic equilibrating process. 19