IDEAS home Printed from https://ideas.repec.org/a/fep/journl/v2y1989i1p82-94.html
   My bibliography  Save this article

The Austrian theory of price : an example

Author

Listed:
  • Martti Vihanto

    (Turku School of Economics and Business Administration)

Abstract

This paper introduces a simple example for teaching the Austrian theory of price to undergraduate students. It is argued that market prices serve a social function, because plan discoordinations manifest themselves as discrepancies in prices. When plans can be freely expressed in terms of the same commodity (money), the quantities of this commodity (prices) can be compared with each other, and discrepancies between the plans (price differentials) can be perceived with relative ease by entrepreneurs. Traditionally, many economists have failed to understand that the function of market prices is more than merely summarizing market information.

Suggested Citation

  • Martti Vihanto, 1989. "The Austrian theory of price : an example," Finnish Economic Papers, Finnish Economic Association, vol. 2(1), pages 82-94, Spring.
    • Handle: RePEc:fep:journl:v:2:y:1989:i:1:p:82-94
    as

    Download full text from publisher

    File URL: http://www.taloustieteellinenyhdistys.fi/images/stories/fep/fep19891_8.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Loasby, Brian J, 1982. "The Entrepreneur in Economic Theory," Scottish Journal of Political Economy, Scottish Economic Society, vol. 29(3), pages 0223-0223, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hederer, Christian, 2007. "Political Entrepreneurship and Institutional Change: an Evolutionary Approach," MPRA Paper 8249, University Library of Munich, Germany.
    2. Ross, R. Brent & Westgren, Randall E., 2006. "Economic Returns to Entrepreneurial Behavior," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(2), pages 403-419, August.
    3. Israel Kirzner, 1999. "Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1), pages 5-17, January.
    4. Israel Kirzner, 2009. "The alert and creative entrepreneur: a clarification," Small Business Economics, Springer, vol. 32(2), pages 145-152, February.
    5. Berg, Nathan, 2014. "Success from satisficing and imitation: Entrepreneurs' location choice and implications of heuristics for local economic development," Journal of Business Research, Elsevier, vol. 67(8), pages 1700-1709.
    6. Stathopoulou, Sophia & Skuras, Demetrios, 2000. "Rural Entrepreneurship And Regional Development," ERSA conference papers ersa00p166, European Regional Science Association.
    7. Trofimov, Ivan D., 2017. "International policy entrepreneurship and production of international public goods: the case of multilateral trade regime," MPRA Paper 80819, University Library of Munich, Germany.
    8. Kirzner, Israel M., 2008. "The Alert and Creative Entrepreneur: A Clarification," Working Paper Series 760, Research Institute of Industrial Economics.
    9. Trofimov, Ivan, 2017. "Entrepreneurship and policy dynamics: a theoretical framework," MPRA Paper 79497, University Library of Munich, Germany.
    10. Fikret Adaman & Pat Devine, 2002. "A Reconsideration of the Theory of Entrepreneurship: A participatory approach," Review of Political Economy, Taylor & Francis Journals, vol. 14(3), pages 329-355.
    11. Rosolino A. Candela & Peter J. Jacobsen & Kacey Reeves, 2022. "Malcom McLean, containerization and entrepreneurship," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 35(4), pages 445-465, December.
    12. Metcalfe, John S. & Ramlogan, Ronnie & Uyarra, E., 2002. "Economic Development and the Competitive Process," Centre on Regulation and Competition (CRC) Working papers 30612, University of Manchester, Institute for Development Policy and Management (IDPM).
    13. Ivan D. TROFIMOV, 2017. "International policy entrepreneurship and production of international public goods: the case of multilateral trade regime," Journal of Economics Library, KSP Journals, vol. 4(4), pages 473-501, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fep:journl:v:2:y:1989:i:1:p:82-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Editorial Secretary (email available below). General contact details of provider: https://edirc.repec.org/data/talouea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.