The Austrian School of Economics offers a distinctive approach to understanding economic phenomena, and is based on the following premisses: (1) Firstly, methodological individualism, the belief that social and economic events result from individual actions, and that individuals act based on their subjective preferences (so called-preference maximization). (2) And secondly, the school emphasizes subjective value theory, where value is not intrinsic to goods but determined by individuals' pref...

The Austrian School of Economics offers a distinctive approach to understanding economic phenomena, and is based on the following premisses: (1) Firstly, methodological individualism, the belief that social and economic events result from individual actions, and that individuals act based on their subjective preferences (so called-preference maximization). (2) And secondly, the school emphasizes subjective value theory, where value is not intrinsic to goods but determined by individuals' pref...