Presentación de libro: Living Economics


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Entrepreneurial video of the week – Peter Boettke and Chris Coyne


Last week we were visited by two leaders of Free Markets and Capitalism. Peter Boettke and Chris Coyne are Mercatus Scholars and GMU Economics Professors that gave a series of lectures on Austrian Economics, Public Policy, Entrepreneurship and Economic Development.

In the following links, you will be able to watch two interviews they gave at UFM,

Christopher Coyne
June 13, 2011

More Resources:

Economics video of the week: On Wealth Creation


In today’s video, Yaron Brook discusses the “zero-sum game” fallacy in economics in this PJTV interview. This interview is based on themes developed in Dr. Brook’s recent article on Forbes.com, co-authored with Don Watkins. Recorded June 17, 2011.

 

“We’ve heard it a million times: the rich get the pie, the poor get the crumbs. But Yaron Brook and the Front Page team explain why there is no “wealth pie” waiting to be sliced. We make our pies, so get out your cookbook.”

via: The Ayn Rand Center for Individual Rights

Recommended links:

Visions of History: Ways of Seeing the Past by Stephen Davies


I listened for the first time a lecture by Dr. Davies in 2005.  Since then I’ve been an admirer of his work and his eloquence for teaching and sharing his ideas on history, entrepreneurship and liberty.

Here’s a great dissertation by Dr. Davies that is worth watching,

Dr. Steve Davies presents:

The way we think about and understand the past shapes the way we view both the present and the future – Orwell’s famous slogan from 1984 captures this. Most of us without realizing it have a unique vision of the past, a way of thinking about it that predisposes us to look at current events in a particular way. In general, we focus on power and its workings while overlooking other aspects of human existence such as voluntary exchange, cooperative interaction, innovation, and discovery. When these are brought to the foreground, a different kind of historical narrative emerges and transforms our ideas of important dates and significant figures in history.

Prices, who “sets” them?


If is often that we hear that a company “set” the price for some products, or that Steve Jobs, “set” the price of the iPad pretty good.  However, we usually forget that it is the job of entreprenuers to pronosticating what they expect would occur in the future in regard of the pricing process they follow.  Their job is to effectively understand their consumers’ (an specif consumer target of men determined by sociological and economical data) message and propose a price that will be of interest to marginal buyers.

However, it is consumers-an infinite list of individuals making valuations- who set the price of all products.  Here’s what Ludwig von Mises has to say in that regard,

“They are determined between extremely narrow margins: the valuations on the one hand of the marginal buyer and those of the marginal offerer who abstains from selling, and the valuations on the other hand of the marginal seller and those of the marginal potential buyer who abstains from buying.”  Ludwig von Mises.  Abstract from the Chapter XVI.  Prices: The Pricing Process.  Human Action. A Treatise on Economics

As such, in regard to the price setting of the iPad it was the result of individuals that demanded this product from the first time it was announced a couple months ago.  It was the job of the guys in Apple (entrepreneurs) to speculate on the closest price in which consumers were going to buy their product ie. the Ipad.  Prices cannot be effectively determined by any single men.  Surely, we will see the price of the iPad fluctuate in the near future.  Just as it happened with the Kindle and just as it happens with all products that are sold in the world.

PS: for more info on The Pricing process I recommend you to check the chapter XVI of Mises’ Treatise which can be found free online at the website of the Mises Institute.