Austrian school of economics

A tradition in economic thought that explains economic phenomena through individual choices, subjective value, and market coordination, especially through prices.

Subjective theory of value: The view that an object's economic value depends on how individuals rank it relative to alternatives. It replaces labor or intrinsic worth with individual preferences as the basis of value.
Price system: The network of prices that communicates relative scarcity and guides economic decisions. Prices condense changing information about supply, demand, and competing uses.
Carl Menger: An Austrian economist whose 1871 book helped establish the marginalist theory of value. His account of subjective value is commonly treated as the school's starting point.
Marxian economics: An economic tradition analyzing capitalism through class relations, production, and the accumulation of capital. Austrian economists directly challenged Marxian theories of value, exploitation, and economic organization.
Methodological individualism: An approach that explains social outcomes through the actions and interactions of individuals. Austrian explanations begin with choosing individuals rather than aggregate forces.
Entrepreneurship: The process of organizing resources under uncertainty to pursue perceived opportunities. Entrepreneurs act on price differences and unmet needs, helping markets adjust.
Principles of Economics: Carl Menger's 1871 treatise explaining value and prices through individual wants and marginal utility. The book set out the foundational approach later identified as Austrian economics.
Keynesian economics: An economic tradition emphasizing aggregate demand and the role of policy in stabilizing output and employment. Its macroeconomic policy prescriptions often conflict with Austrian explanations of downturns and intervention.
Praxeology: The study of human action as purposeful behavior directed toward chosen ends. Ludwig von Mises treated action as the starting point for economic reasoning.
Market process: The ongoing adjustment of plans through exchange, competition, and changing prices. Austrians emphasize markets as processes of discovery rather than settled states of equilibrium.

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