An Austrian Theory of the Firm

An Austrian Theory of the Firm The modern Theory of the Firm uses the concept of rent and makes implicit assumptions about equilibrium. An Austrian (Market Process) Theory of the Firm should have something to say about each of these. Two strategic perspectives are analyzed, the neoclassical microeconomic perspective (using the Ricardo-Marshall approach to rent) and the Market Process perspective (using the Fetter approach to rent). In a neoclassical world, rents indicate “unsolved” or unexploited “inefficiencies” as every hypothetical outcome is viewed against the standard of perfect competition. By contrast, in the Market Process world there is no single ideal standard by which to measure any particular outcome. All action takes place in an open ended universe in which the future is continually being created, in which competition is a “discovery process.” The Review of Austrian Economics Springer Journals

An Austrian Theory of the Firm

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Kluwer Academic Publishers
Copyright © 2000 by Kluwer Academic Publishers
Economics; Public Finance; Political Science; History of Economic Thought/Methodology
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