BEGINNER

Market Process

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

Related Publications

ARCHIVE

"I, Pencil" Revisited

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.

Related Freeman Articles

THE CALLING

On Competition and Entrepreneurship

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.

ARTICLE

Hayek, Coase, and Buchanan on the Market Process

Three Memorable Articles on Liberty

JUNE 01, 2007 by DONALD BOUDREAUX

ARTICLE

Israel Kirzner on Supply and Demand

Must We Assume Perfect Competition and Perfect Knowledge?

JULY 01, 2000 by JAMES C. W. AHIAKPOR

ARTICLE

Demand and Supply

The Market Process Directs People to Accommodate One Another

OCTOBER 01, 1998 by DWIGHT R. LEE

Related Multimedia

MULTIMEDIA - VIDEO

Entrepreneurship and Market Process

FEBRUARY 14, 2011

MULTIMEDIA - AUDIO

Entrepreneurship and Market Processes II

JULY 18, 2010

MULTIMEDIA - AUDIO

Competition and Entrepreneurship

JULY 13, 2010

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CURRENT ISSUE

September 2014

For centuries, hierarchical models dominated human organizations. Kings, warlords, and emperors could rally groups--but also oppress them. Non-hierarchical forms of organization, though, are increasingly defining our lives. It's no secret how this shift has benefited out social lives, including dating, and it's becoming more commonplace even in the corporate world. But it has also now come even to organizations bent on domination rather than human flourishing, as the Islamic State shows. If even destructive groups rely on this form of entrepreneurial organization, then hierarchy's time could truly be coming to an end.
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