Market Theory and the Price System

2015 ◽  
pp. 64-93
Author(s):  
Frederic Sautet
Keyword(s):  
Price System ◽  
Perfect Competition ◽  
Market Process ◽  
Market Theory ◽  
Ludwig Von Mises ◽  
Entrepreneurial Discovery ◽  
Classical Notion ◽  
System P ◽  
The Difference ◽  
Von Mises

This chapter presents a narrative about the evolution of market theory, which can be divided into two lines of thinking: the genetic-causal and the instrumental-causal traditions. The difference between the two views became clear around 1920, when prices came to be considered as parameters. This evolution had wide-ranging implications, as it drove the entire corpus of perfect competition and rejected the classical notion of the market as a dynamic, entrepreneurial system. Ludwig von Mises and Friedrich Hayek criticized the instrumental-causal view of market theory, arguing that its focus on equilibrium precluded an explanation of the way the market process unfolds. But it was Israel Kirzner who offered a theory of entrepreneurial discovery based on the alertness to hitherto unnoticed profit opportunities. It is argued that Kirzner’s market theory is the most accomplished theory of its kind in the genetic-causal tradition.

scholarly journals Two theoretical approaches to human behavior and social institutions

2021 ◽  
pp. 13-50
Author(s):  
Javier Aranzadi del Cerro
Keyword(s):  
Market Economy ◽  
Social Institutions ◽  
Dynamic Structure ◽  
Chicago School ◽  
Human Action ◽  
Jel Classification ◽  
Market Process ◽  
Ludwig Von Mises ◽  
Theoretical Approaches ◽  
Von Mises

This paper deals with theoretical approaches to the real economic crisis we are suffering. I set out the poverty of the theoretical solutions offered by mainstream neoclassical economics and the necessity of a new theoretical approach, which is not obsessed by the positivist method. My argument is based on the work of Ludwig von Mises who was considered to give the best theoretical arguments in the debate on the impossibility of efficient economic calculation under centrally planned socialism. Although nowadays the Austrian School is considered old-fashion and lacking in scientific rigour, I agree with the late Professor Sumantra Ghoshal that it is necessary to escape from strait-jacketed methods and try to understand real economics problems. Our market economy is suffering from what he described as the consequences of bad theories destroying good entrepreneurial practices. For I do think that the triumph over communism is in danger of becoming a Pyrrhic victory if we lose our understanding of the market economy and its dynamic structure based on entrepreneurs and firms. Key words: Human action, Ludwig von Mises, Chicago School, entrepre - neurship, market process, social institutions. JEL Classification: A10; B41; B53; D00. Resumen: Este artículo compara los modelos teóricos con los que se analiza la crisis económica que estamos sufriendo. Planteo la pobreza teórica ofrecida por el paradigma neoclásico dominante y defiendo la necesidad de nuevas aproximaciones teóricas que no estén obsesionadas por el método positivista. Mi argumento se basa en la obra de Ludwig von Mises quien fue considerado el economista que esgrimió los mejores argumentos tóricos en el debate sobre la imposibilidad de una cálculo económico eficiente en una económica de planificación central. Aunque hoy en día se considera que la Escuela Austriaca está pasada de moda y falta de rigor científico, estoy de acuerdo con el difunto profesor Sumantra Ghoshal sobre la necesidad de abandonar los métodos encorsetados e intentar comprender los problemas económicos reales. Nuestra economía de mercado está sufriendo las consecuencias de lo que él describe como malas teorías que destruyen buenas prácticas empresariales. Son estas las razones por las que pienso que el triunfo sobre el comunismo está en riego de convertirse en una victoria pírrica si perdemos nuestra comprensión de la economía de mercado y su estructura dinámica basadas en la empresarialidad y la empresa privada. Palabras clave: Acción humana, Ludwig von Mises, Escuela de Chicago, empresarialidad, proceso de mercado, instituciones sociales. Clasificación JEL: A10; B41; B53; D00.

scholarly journals Finding the Entrepreneur-Promoter: A Praxeological Inquiry

2020 ◽  
Vol 23 (3-4) ◽  
pp. 355-389
Author(s):  
Per Bylund
Keyword(s):  
Driving Force ◽  
Human Action ◽  
Theoretical Explanation ◽  
Market Process ◽  
General Function ◽  
Ludwig Von Mises ◽  
Von Mises ◽  
Economic Improvement

Entrepreneur-promoters, or the pioneers of economic improvement, provide an essential market function which economics cannot do without. Yet Ludwig von Mises maintains that this function lies beyond what can be defined with praxeological rigor. This paper attempts to find a praxeological subcategory of entrepreneurship that conforms with Mises’s indeterminate references to the entrepreneur-promoter in Human Action. Rather than relying on the evenly rotating economy, which is commonly used for analyzing entrepreneurship, the imaginary construction of a specialization deadlock is employed, adapted from Per Bylund’s Problem of Production. This construction allows for the derivation of a praxeological subcategory of entrepreneurship, distinct from the general function of uncertainty bearing, which suggests a theoretical explanation for what constitutes the driving force of the market process.

ADAM SMITH’S SYSTEM OF NATURAL LIBERTY: COMPETITION, CONTESTABILITY, AND MARKET PROCESS

2010 ◽  
Vol 32 (2) ◽  
pp. 237-262 ◽  
Author(s):  
MICHAEL E. BRADLEY
Keyword(s):  
Economic Theory ◽  
Perfect Competition ◽  
Market Process ◽  
Market Theory ◽  
Competitive Model ◽  
Modern Economic ◽  
Contestable Market

In this article, I argue that Adam Smith’s system of perfect liberty contains some of the seeds of perfect competition, but that the modern perfectly competitive model differs from Smith’s perfect liberty in some important respects—in particular, the role of active competition among firms and the role of the entrepreneur. The article examines the analytical linkages between Smith’s system of liberty and three strands of modern economic theory—neoclassical perfect competition, contestable market theory and the Austrian analysis of market process.

Photoisomerization-induced patterning of ion-pairing materials based on anionic azobenzene and its complex with a fluorescent π-electronic system

2021 ◽  
Vol 57 (35) ◽  
pp. 4287-4290
Author(s):  
Ryohei Yamakado ◽  
Issei Kitamura ◽  
Mitsuo Hara ◽  
Shusaku Nagano ◽  
Takahiro Seki ◽  
...  
Keyword(s):  
Surface Tension ◽  
Mass Transport ◽  
Trace Amount ◽  
Ion Pairs ◽  
Ion Pairing ◽  
Electronic System ◽  
Large Mass ◽  
System P ◽  
The Difference

Large mass transport driven by the difference in the photoisomerization-induced surface tension was demonstrated in ion pairs, enabling fluorescence patterning using a trace amount of photoisomerized anions in complexation with a π-electronic system.

scholarly journals Perfect Capitalism, Imperfect Humans: Race, Migration and the Limits of Ludwig von Mises’s Globalism

2018 ◽  
Vol 28 (2) ◽  
pp. 143-155 ◽  
Author(s):  
Quinn Slobodian
Keyword(s):  
International Order ◽  
Normative Theory ◽  
Habsburg Empire ◽  
Empirical Reality ◽  
Ludwig Von Mises ◽  
Austrian Economist ◽  
Global Mobility ◽  
Open Borders ◽  
International Theory ◽  
Von Mises

While the Viennese origins of key neoliberal intellectuals is well known, the formative influence of the Habsburg Empire on their thought is surprisingly understudied. This article argues that the empire was a silent and open partner in the writings of Austrian economist Ludwig von Mises on international order, especially on questions of migration and the management of a polyglot population. After 1918 Mises conceived of robust forms of multinational governance capable of protecting a world of what he called ‘perfect capitalism’ with total global mobility of labour, capital and commodities. Yet, by 1945 he had scaled back his proposals to the effective recreation of the Habsburg Empire. I show that Mises’s international theory was cleft by a faultline between a normative theory of an open borders world and the empirical reality of a closed borders world, underwritten by what he saw as the stubborn obstacles of human ignorance and racial animus.

scholarly journals A Filosofia da Liberdade na Saga de Filmes Star Wars – Parte 2

2014 ◽  
Vol 2 (2) ◽  
pp. 563-590
Author(s):  
Alex Catharino
Keyword(s):  
Ludwig Von Mises ◽  
Star Wars ◽  
George Lucas ◽  
Von Mises

O artigo analisa a Filosofia Moral e a Teoria Política que permeiam a saga de filmes Guerra nas Estrelas, do cineasta George Lucas. O autor relaciona a queda da personagem Anakin Skywalker com a ascensão do Império Galáctico e discute alguns temas da estória que podem ser apropriadas como metáforas explicativas de algumas propostas teóricas da Escola Austríaca de Economia, em especial das ideias de Ludwig von Mises e de F. A Hayek.

scholarly journals Ludwig Erhards Konzept der sozialen Marktwirtschaft und seine wettbewerbstheoretischen Grundlagen

2017 ◽  
Vol 5 (2) ◽  
pp. 83-106 ◽  
Author(s):  
Martin Rhonheimer
Keyword(s):  
Ludwig Von Mises ◽  
Franz Böhm ◽  
Von Mises

Abstract Erhards Konzeption einer sozialen Marktwirtschaft durch marktwirtschaftlichen Wettbewerb ist auch heute noch wegweisend. Doch wurde die Idee des Sozialen im Programm der Sozialen Marktwirtschaft mit der Zeit verfälscht. Zudem beruht Erhards Konzept auf einer wettbewerbstheoretischen Grundlage – dem neoklassischen Modell der vollständigen Konkurrenz –, die seinen wohlstandsfördernden Intentionen zuwiderläuft. Erhards Position stimmte mit derjenigen der Freiburger Schule (Walter Eucken, Franz Böhm) nur teilweise überein, unterscheidet sich aber ebenso in wesentlichen Punkten vom Denken der Österreichischen Schule der National-ökonomie (Ludwig von Mises, Friedrich August Hayek) und deren dynamisch-evolutionärem Verständnis von Wettbewerb. Gerade für eine im Sinne Erhards wettbewerbsorientierte Konzeption der Sozialen Marktwirtschaft erscheint das Österreichische Verständnis von Wettbewerb als das realitätsnähere und adäquatere.

scholarly journals Sobre as Origens do Bitcoin:

2016 ◽  
Vol 4 (1) ◽  
pp. 121-139
Author(s):  
Konrad S. Graf
Keyword(s):  
Ludwig Von Mises ◽  
Carl Menger ◽  
Von Mises

Nesta obra, o autor desenvolve um estudo econômico e histórico da origem do Bitcoin e de seu valor enquanto moeda. Em sua argumentação, o autor explora a relação entre a moeda digital Bitcoin e a Economia Austríaca, discutindo, em particular, o Teorema da Regressão de Ludwig von Mises e sua conexão com a evolução do mercado monetário, bem como a abordagem evolutiva seminal de Carl Menger.

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