The Austrian School of Economics espouses principles and theories of economics based upon deduction from the nature of human action, especially stressing the subjective nature of value.
The Austrian School of Economics consist of a group of economists who developed the modern subjective theory of value and applied it to the various problems of economics. Its founders and early leaders Carl Menger (1840-1921), Friedrich von Wieser (1851-1926), and Eugen von Böhm-Bawerk (1851-1914), as well as Ludwig von Mises (1881-1973) and Friedrich A. Hayek (1899- )were all Austrian born. American Murray N. Rothbard also contributed to this body of work.
The principles and theories of the Austrian School of Economics, along with its methodology. provide the foundation for the economic assumptions advocated on The Free Market Center.
In addition to clear economic theory, one needs to apply that theory on a consistent basis. For that reason we have adopted the methodology of the Austrian school.
I will discuss the characteristics of Austrian economics that make it different from other schools of economics. These eight characteristics markedly distinguish the Austrian School from other popular schools.
The word praxeology refers to the systematic study of purposeful human action. Praxeology provided a foundational concept in the theories developed by Ludwig von Mises.
Deductive reasoning, used in the Austrian Methodology, leads from true principles (or axioms) to true conclusions. (See description in Deductive Logic.)
Subjective Value Theory
… economic value is not an inherent property of a good, but determined by the preferences of those who wish to acquire the good. (See description in Value Theory.)