Hi guys,
In a few months I will be writing an academic paper for my MSc in Marketing. However, I would like to incorporate some elements of Austrian economics.
I was for example thinking of the business cycle theory and what its impact is on marketing decisions of firms. However, the one element which is required is statistical testing of hypotheses (I know Austrians hate it).
Any suggestions/ideas? (on other possible subjects or potential hypotheses?)
Thanks a lot
Read this, I think the considerations Mises mentions here have a relevance to long term strategic planning and marketing decisions made by businessmen in light of current and forseeable trends. If it inspires you to write something, I’d be interested in reading your final paper.
It would be cool to see if change in yearly profits the year after the depression correlated with political lobbying, first access to new money (loans from the FRB, or the next step removed)…,
Thanks for the input!
Any thoughts on how firms should deal with the business cycle from an Austrian perspective??? Anyone?
A medium sized oil company I worked at dealt with market fluctuations by hedging all of their production. So they hedged when gas was at $8/mcf, and after the depression it got down to $3.50. Similarly with oil.
But that just pushes the problem onto financial groups. How do they deal with it? It seems like jumping on the bandwagon is the thing to do. Sell bernanke all your toxic assets! But no, in the absence of fed interferance, speculators would short the “bubble” markets. They would clean up, and more and more capital would eventually be accumulated under people who could predict these kinds of recessions. But like I said… the greenspan put kind of stops the market from even trying to beat the central bank ><