Intertemporal Exchange

The importance of disequilibrium, profits, and expectations can be traced, as we have seen, to the introduction of the time element in economic models. Time, in this sense, is the name we give to possibility in particular, the possibility that something unexpected might happen. Time, however, can be viewed in another, yet far more stylized way. It can be viewed as a pure coordinate axis, a dimension similar to that of space.50 As a coordinate axis it is the time of most conventional economic...

Conclusions

In all of the foregoing we have been at great pains to demonstrate both the legal and economic difficulties involved with the claim that the common law is efficient. Many of these difficulties rest on fundamental conceptual confusions, while others are the result of internal inconsistencies. All of them serve to illustrate the serious incoherence of the view. In summary, we have made seven basic points 1. The idea of efficiency is hopelessly clouded in ambiguity, and clear thinking might better...

Radical Subjectivism or Radical Subversion

I have elsewhere argued that the Austrian theory of the market process differs crucially from various recent theories of behavior under uncertainty such as the theory of search or the theory of temporary general equilibrium , in that eventually all these latter models more or less run down as the agents discover all there is to know.45 It would now appear that Kirzner's theory of the entrepreneurial process shares precisely this property. Paradoxically, perhaps one of the insights gained by...