Mises Search

Mr. Smith walked into the electronic department, searching for a new plasma TV. He has decided that he will buy either a Grundig or a cheaper Chinese brand. Grundig TVs are tempting because, even if they cost more, they offer an outstanding after-sales service: if the TV breaks, for whatever reason, a substitute will arrive in 24 hours. To make

The author of the Jerusalem Post piece (” The Austrian School Flunks”), makes the naïve assumption that an individual, knowing his personal time preference, knows as well the aggregate market’s time preference. Under this assumption the two problems raised could be true. Regarding problem one, investors that know the market’s time preference and