August, 2016

The Nature of the Market in Mises and Weber

  • Solomon Stein

    Senior Fellow, F. A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics
  • Virgil Storr

    Board Member, Mercatus Center
read more

Find the chapter at Emerald Insight.

Max Weber and the Austrian School of Economics share many of the same intellectual influences as well as a similar commitment to a social science characterized by methodological individualism, methodological subjectivism, and value-freedom. Although many of the links between Weber and the Austrian school have been explored, one area of agreement between Weber and Mises that is yet to be explored is their shared understanding of the nature of the market. This chapter attempts to close this gap by examining the pictures of the market in Weber’s Economy and Society and Mises’ Human Action. We find that both portrayals share important features. These include similarities regarding (i) the nature of the market; (ii) the market’s autonomous logic; (iii) the impersonality of the market; and (iv) the market in society.