A type of economic analysis that views individuals as having to choose between discrete amounts of inherently scarce goods and services. Due to scarcity, individuals must prioritize in order to fulfill those needs and desires that are most important to them. Marginal analysis accounts for these preferences and is used to build models that include this decision making process.
Steve Horwitz - What Austrian Economics IS and What Austrian Economics is NOT
Anthony Carilli - The Economic Way of Thinking
Related Freeman Articles
What governs price?
JANUARY 14, 2011 by SHELDON RICHMAN
As Ludwig von Mises's teacher shows, Austrian economics never fails to fascinate.
The Price System Creates Far More Wealth and Opportunity Than Central Direction
FEBRUARY 01, 2001 by DWIGHT R. LEE
To do your best in your personal activities, you have to "equate at the margin," which, as I explained last month, means allocating your time over different activities so that the marginal value of time in every activity is the same. The importance of equating at the margin extends beyond individuals doing as well as possible personally; it is also crucial to the success of the general economy.
JANUARY 01, 2001 by DWIGHT R. LEE
There are so many economic issues that cannot be understood properly without recognizing the importance of marginal considerations that I could continue writing columns on marginalism indefinitely. Indeed, marginal analysis will reappear both explicitly and implicitly in my future columns. But this month I will wrap up my emphasis on marginalism with some additional observations on this crucial economic concept.
We Price Our Lives Every Day by the Actions We Take
OCTOBER 01, 2000 by DWIGHT R. LEE
When I ask students in my large economics classes if some things are just too important to put a price on, someone always answers, "human life." This seems like a reasonable answer.
Economics Can Help Us Understand Family Dynamics
AUGUST 01, 2000 by DWIGHT R. LEE
Distinguishing between marginal and total values is crucial to understanding many human activities and decisions. Almost all the decisions we make are made at the margin, but there are exceptions. We are sometimes faced with decisions that force us to compare the total value of one option to the marginal value of another.
MULTIMEDIA - VIDEO
NOVEMBER 14, 2012 by STEVEN HORWITZ
Steve Horwitz, Professor of Economics at St. Lawrence University, explains what Austrian Economics is and what Austrian Economics is not, clearing up some common misconceptions.
This video is based on Steve's essay by the same name:
To learn more about Austrian Economics, visit http://www.fee.org