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  5. Austrian and Neoclassical Economics: Any Gains from Trade?

Journal of Economic Perspectives

ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)

Austrian and Neoclassical Economics: Any Gains from Trade?

  • Sherwin Rosen
Journal of Economic Perspectives
vol. 11, no. 4, Fall 1997
(pp. 139–152)
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Abstract

The systems aspects of Austrian economic thought pertaining to the process of competition deserve a prominent place in modern economic thinking. The paper develops the differences between the Austrian view of competition as an evolutionary process, and the neoclassical emphasis on determining market equilibrium under known or given conditions. These bear importantly on the fundamental way we think about decentralization of economic activities among highly specialized agents with incomplete knowledge and information. The role of competition as a selection device that often encourages survival of the fittest and solves some types of agency problems is well worth thinking about.

Citation

Rosen, Sherwin. 1997. "Austrian and Neoclassical Economics: Any Gains from Trade?" Journal of Economic Perspectives, 11 (4): 139–152. DOI: 10.1257/jep.11.4.139

JEL Classification

  • D40 Market Structure and Pricing: General
  • B41 Economic Methodology
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