The Market As A Process Of Discovery

With the benefit of hindsight, we now understand that, in the Austrian view of the market, its most important feature is (and was) the dynamic entrepreneurial-competitive discovery process. We know now that, for Mises, the idea of a price that does not reflect and express entrepreneurial judgement and hunch is virtually a contradiction in terms. (It is for this reason that Mises rejected Lange's contention that socialist managers may be able to take their bearings from - and to calculate on the...

The Puzzle Of Prescience

Yet it must be immediately acknowledged that we have not yet fully grappled with the key problem raised by the radical subjectivists. We envisage entrepreneurs -and, as is well known from the work of Mises and of Shackle, we are all entrepreneurs - endeavouring to imagine the future. Yet that imagined future must depend upon their own decisions. The future-to-be-imagined is not the future course of events which would ensue (with all the creativity and novelty of the actions that will make up...

Also available as a printed book see title verso for ISBN details

Foundations of the market economy series Edited by Mario J. Rizzo, New York University and Lawrence H. White, University of Georgia A central theme of this series is the importance of understanding and assessing the market economy from a perspective broader than the static economics of perfect competition and Pareto optimality. Such a perspective sees markets as casual processes generated by the preferences, expectations and beliefs of economic agents. The creative acts of entrepreneurship that...

On Teleological And Nonteleological Perspectives

Buchanan and Vanberg 1990 develop the distinction between what they call the 'teleological' and the 'non-teleological' perspectives as follows. In the teleological view 'the efficacy of market adjustment is measured . . . in terms of the relative achievement of some pre-defined, pre-existing standard of value' p. 18 . Clearly it is the teleological view which depends upon the conceptualization of 'objective facts' the very notion of which was challenged, we saw, by Kregel , independent of...