Economic Organization, Capabilities and Coordination

8

AUSTRIAN AND POST-MARSHALLIAN ECONOMICS

The bridging work of George Richardson

Nicolai J. Foss

INTRODUCTION¹

At first glance, there seems to be little similarity between Austrian and post-Marshallian economics. On the one side, we have one of the three distinct marginalist traditions, originating in Austria in 1871, and recently flourishing in the United States (Vaughn 1994). In its modern incarnation, the Austrian school has laid particular emphasis on economic methodology and research into the entrepreneurial role in the market process. On the other side, we confront representatives of the genuine Marshallian tradition, who have mainly written on industrial organisation and firm behaviour.

In contrast, Austrians have written relatively little ...