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:

Entrepreneurial video of the week

TitleEntrepreneurship and the Capitalist Society: Inteview with Peter G. Klein

About: In this video, Peter G. Klein, analyze the fundamentals of  market process theory.  Klein explains which is the role of an entrepreneur in such a society, and how is it different from the role of a capitalist (investor and risk taker). Klein further explains the role of the “discovery process” in Austrian Economics.

Peter G. Klein is an American Austrian economist who studies managerial and organizational issues. Klein is Associate Professor in the Division of Applied Social Sciences at the University of Missouri and Associate Director of the Contracting and Organizations Research Institute (CORI).[1] He is also an adjunct professor at the Norwegian School of Economics and Business Administration, Senior Fellow at the Ludwig von Mises Institute,[2] and a Faculty Research Fellow at the McQuinn Center for Entrepreneurial Leadership.

Videoconference: Arts and Science

“Almost all Nobel laureates in the sciences are actively engaged in arts as adults. They are twenty-five times as likely as average scientist to sing, dance, or act; seventeen times as likely to be an artist; twelve times more likely to write poetry and literature; eight times more likely to do woodworking or some other craft; four times as likely to be a musician; and twice as likely to be a photographer.” — Bob Root-Bernstein, Ph. D., physiologist and MacArthur Fellow. (Via S.C. Kavassalis)

Video: Uses of Science & technology in which they are applied to Art and viceversa (en inglés).

In this video: Forest Whitaker, Actor, Wyclef Jean, Musician, Producer and Social Activist, Chris DeWolf, CEO, mySpace and James Wiatt, Chairman and CEO, William Morris Agency

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.