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