Entrepreneurial Discovery is a process in which alertness reveals an unrecognized opportunity. Kirzner analytically distinguishes it from deliberately acquiring missing data within an already known decision framework. Implementation, others’ responses and errors belong in the explanation of the market process.
Checking a known supplier’s price is deliberate search. Noticing that an ignored by-product could serve another customer changes the choice framework. Kirzner’s distinction describes types of ignorance; it does not say practical work or preparation is unnecessary. [Kirzner — How Markets Work]
Kirzner’s simplified example uses the same good in two markets with zero transport costs. In practice compare quality, timing, transport and feasibility of both trades. Two displayed prices differing does not itself prove an exploitable net profit. [Kirzner — How Markets Work]
Additional buying in the cheaper market can push its price up, while selling in the dearer one can push its price down. Kirzner uses this to explain a coordinating tendency. Price changes during execution mean the initially observed gap cannot automatically apply to unlimited trading volume. [Kirzner — How Markets Work]
Kirzner distinguishes an unused opportunity from a plan that cannot be completed at the expected scale. Unsold stock may directly disappoint a sales plan while an overlooked possibility stays hidden. Disappointment alone, however, does not identify the correct adjustment. [Kirzner — How Markets Work]
Kirzner’s mechanism explains how discoveries can correct earlier errors. It guarantees neither that every error will be found nor that further changes will cease. Trace specific learning and responses; discovery is no substitute for evidence of a perfectly coordinated market. [Kirzner — How Markets Work]
Hayek emphasizes knowledge of particular circumstances of time and place. Spare capacity is an opportunity only with suitable timing, quality and complementary inputs. A capacity list is therefore no complete list of profitable options; verify the link between local insight and use. [Hayek — The Use of Knowledge in Society]
Mises connects entrepreneurial outcomes with anticipation of an uncertain future. Record available information, expected costs and later changes when evaluating a case. A successful firm alone does not prove what its founder knew beforehand; comparisons must include failed attempts too. [Mises — Human Action, XV]
The ability to accept Bitcoin may inspire a new service format, but a working payment does not verify customer interest. Applying the distinction requires separate checks of need, delivery conditions and costs. Technology adoption is one step; economic usefulness of the supposed opportunity is another question. [Hayek — The Use of Knowledge in Society] [Mises — Human Action, XV]
For the clearest picture, read this entry together with Entrepreneurship, Knowledge Problem, Economic Calculation, Consumer Sovereignty, Catallactics. The reverse links also lead from Entrepreneurship, Consumer Sovereignty.