The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Competition, Austrian

  • Paul J. McNulty
Reference work entry


The essence of Austrian economics is its emphasis on the ongoing economic process as opposed to the equilibrium analysis of neoclassical theory. Austrian concepts of competition reflect this emphasis. Indeed, one of the central challenges by Austrians to the neoclassical model, and a common denominator of virtually all Austrian economics, is the rejection of the concept of perfect competition. In this respect, a number of economists who cannot be considered Austrian in all aspects of their work, share, nonetheless, the Austrian emphasis on actual market activities and processes – for example, Joseph Schumpeter (1942), J.M. Clark (1961), Fritz Machlup (1942) and others.


Allocative efficiency Austrian economics Competition, Austrian Creative destruction Entrepreneurship Imperfect competition Innovation Market power Mises, L.E. von Monopolistic competition Monopoly Perfect competition Schumpeter, J.A 

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Paul J. McNulty
    • 1
  1. 1.