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Austrian school of economics

   Also found in: Wikipedia, Hutchinson 0.01 sec.

Austrian school of economics

Body of economic theory developed by several late 19th-century Austrian economists. Carl Menger (1840–1921) published a paper on their new theory of value in 1871. The concept of value was subjective, the source of a product's value being its ability to satisfy human wants. The actual value depended on the utility derived by the consumer from the product in its least important use (marginal utility). The theory was also applied to production and pricing. Other founders of the school included Friedrich von Wieser (1851–1926) and Eugen von Böhm-Bawerk (1851–1914). See also opportunity cost; productivity.



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On the surface, the computer-assisted discovery of spontaneous order would appear to be a triumphant vindication of libertarian social theory in general and the Austrian School of economics in particular.
 
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