The adjustments of economic factors like price and quantity driven by the underlying supply and demand forces which bring the free market towards equilibrium; more broadly, the concatenation of all the actions of heterogeneous individuals with differential knowledge and different expectations about the future who pursue their projects and plans through exchange with one another. From the perspective of Austrian economists, a market is a process of discovery and dissemination of relevant information, through which we attempt to correct earlier ignorance; an entrepreneurial discovery of opportunities for profit.
Israel Kirzner - Entrepreneurship and Market Process
Steve Horwitz - What Austrian Economics IS and What Austrian Economics Is NOT
JANUARY 16, 2009 by SHELDON RICHMAN
Leonard Read's classic essay, "I, Pencil," which is now 50 years old, is justly celebrated as the best short introduction to the division of labor and undesigned order ever written. Read saw an "extraordinary miracle ... [in the] the configuration of creative human energies—millions of tiny know-hows configurating naturally and spontaneously in response to human necessity and desire and in the absence of any human master-minding!" But there's another lesson in "I, Pencil" that has been largely overlooked, perhaps by Read himself. "I, Pencil" is also an excellent primer in the Austrian approach to capital theory. It's worth looking at Read's essay in that light.
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The third pillar of the Austrian revival.
SEPTEMBER 27, 2012 by STEVEN HORWITZ
If Austrian economics, and classical liberalism more generally, are to win minds and hearts in the world of ideas, it will be by doing as Israel Kirzner does.