I’ll start: All costs are opportunity costs. PS: Feel free to disagree with stated insights if you disagree with them being Austrian or core Austrian. Would be nice if this thread ends in a lively debate.

Sieben, your point is technically true, but it’s market competition that allows Austrians to assume that increasing monetary costs increases subjective costs. The market disciplines crazy behavior.

I know I’m technically right. Thats why I said my disagreement with rothbard was a boring technical point :wink:

I would argue that the Peltzman effect is praxeological: There are many possible risks one can take that. If several are taken at the same time, acting man’s logic (at least my logic) tells him he needs to multiply the risk-increases with each other for a correct risk-accessment. For example: If you…

This Peltzman topic deserves it’s own thread. It’s highjacking this one, which would be more useful as a concise survey of members’ favorite Austrian insights.

Hm, Grayson, I actually intended for this to be a discussion about which principles are to be considered Austrian (or core Austrian) as I stated in my OP, so I’m glad the Peltzman example was brought up because there is clearly room for discussion whether you can classify it as “Austrian” or not.

Its not apodictic that people will interpret a certain law as decreasing or increasing their risk. Or if they will even bother to calculate it. Like I said on minimum wage, you can increase nominal monetary costs but whether that increases subjective costs is an empirical matter. Similarly, passin…

@Sieben: If you assume that the acting man is not making any reasoning calculations, you can basically discard any economic theory: For example, it is asserted by Böhm-Bawerk and others that the price for labour tends to equal its discounted marginal revenue product (notice, I didn’t say that all ac…

Not to beat a dead horse, but drawing logical conclusions from evidence does not rely upon methodological dualism. For instance, if I consider numerous, varied replicators competing in a closed environment for scarce resources, I can logically deduce that the most adaptive ones will outcompete oth…

What's your favourite Austrian insight?

Economics Economics Questions

Amanojack August 6, 2010, 12:18pm 33

Thanks for that one. There’s a bit of continuing discussion on that paper going on here: https://forum.freecapitalists.org/t/theoretical-discussion-about-aspets-of-a-knotts-theory-of-action/14191/6

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What's your favourite Austrian insight?

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