The Methodology of the Austrian School (Menger)

The Austrian School, founded by Carl Menger, focuses on understanding economics through individual choices and subjective value. It emphasizes that people make decisions based on personal preferences, influencing prices and market outcomes. Menger’s methodology involves analyzing how individuals use their limited resources to satisfy their needs, leading to the emergence of prices and market dynamics. It rejects overly mathematical models, favoring a qualitative approach grounded in real human behavior. Overall, it sees the economy as a set of interconnected choices made by individuals, with truth derived from observing actual decision-making processes rather than abstract equations.