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Cost and Choice: Austrian vs Conventional views

  • The Journal of Libertarian Studies
E.C. Pasour Jr.

Tags Capital and Interest TheoryFiscal Theory

The primary purpose of this paper is to contrast Austrian and conventional concepts of cost. Cost in the logic-of-choice context of conventional neoclassical economic theory is contrasted with subjective cost relevant to individual decision-making. The Austrian subjectivist concept of cost is shown to be sound as it relates to individual choice. The limitations of objective estimates of "cost" when used as a normative standard in evaluating observed market behavior are stressed. Implications of the findings are related to a number of policy issues and problems involving cost.

Volume 2, Number 4 (1978)

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Pasour, E.C. "Cost and Choice: Austrian vs Conventional views." Journal of Libertarian Studies 2, No.4 (1978): 327-336.