IDEAS home Printed from https://ideas.repec.org/a/prg/jnlelg/vpreprintid509.html
   My bibliography  Save this article

Principles of economic calculation and pricing

Author

Listed:
  • Matúš Pošvanc

Abstract

The principles of economic calculation set out by Mises (1990, 1976, 1953, 1998), namely that an agent is inspired by past prices in economic calculation, face the problem of circular argument, infinite regress, and the empirical question of which past prices the agent is inspired by, and are inconsistent with Mises's correct assertion that action is aimed at changing the future. Principles of calculation must be based on attributions of valuation, and calculation must be based on value determinations, which Mises explicitly rejects. I provide an alternative interpretation of the problem that is future-oriented and presents principles of calculation based on the agent's value determinations. This is made possible by a paradigm shift in interpretation based on defining individual utility and individual equilibrium. The paper presents philosophical-economic speculations on the unit of utility (util) and how it can be ontologically-informationally defined. The propositions are supported by in-depth philosophical argumentation alongside Platonic-Aristotelian-Kantian-Hegelian-Brentanian-Hayekian lines, inspired by the works of Ján Pavlik. A logical consequence of the principles presented is a description of the dynamics of price-setting (as a consequence of individual intentions) based on the individual utility of the agent. Demand-supply that are usually used as preconditions for price formation are described in the interpretation as consequences of individual intentionality and dynamic of individual utility.

Suggested Citation

  • Matúš Pošvanc, . "Principles of economic calculation and pricing," E-LOGOS, Prague University of Economics and Business, vol. 0.
    • Handle: RePEc:prg:jnlelg:v:preprint:id:509
    as

    Download full text from publisher

    File URL: http://elogos.vse.cz/artkey/elg-000000-0085.php
    Download Restriction: free of charge
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:prg:jnlelg:v:preprint:id:509. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.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.