Carl Menger
Biography
Carl Menger (1840-1921) was a lawyer and political scientist. He worked as a journalist and market analyst until recieving his law degree, whereafter he immediately began work in the field of economics. His most famous works are Principles and Investigations into the Method of the Social Sciences with Special Reference to Economics. Carl Menger is most notable as the founder of the Austrian school of economics. German historicists coined the term "Austrian School" in reference to Menger's works in order to highlight the separation between his theories and mainstream German economics.
Menger's best known work, Principles of Economics created the system of value and price theory which is the core of the Austrian schools of economic thought. Through the law of marginal utility, Menger's work, established a link between the subjective values underlying consumer choices and objective market prices. It refuted the theory of "calculated action" which attempted to explain market prices with supply and demand, but solely through the choices of businessmen. Menger provided a theory of value which took into account the preferences of individual consumers, and is the basis of modern Austrian economics.
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