The main Catallactic
theorists he discusses are Carl Menger, Georg Simmel, and Ludwig von Mises.
Recognition of the latter implies that the expectations held by market participants are subjective; for the prices of the future that enter the plans of individuals are based on a subjective interpretation of prior catallactic
competition is a zerosum competition for social status that has large spillover benefits for consumers.
By a more or less natural extension of the catallactic
approach, economists can look on politics and on political action in terms of the exchange paradigm.
judges economists by their contribution to economics in the catallactic
By virtue of doing justice to a complex social-institutional ontology (reality) of economic distribution, such sociological epistemology (theory) of the phenomenon is prima facie more realistic and valid than that the catallactic
(market) alternative neglecting this ontological complexity.
Here I introduce Smith's First Catallactic
Law (Smith [1776, II.
Within the Buchanan-Smith catallactic
framework, economic power becomes meaningless in a world of atomistic buyers and sellers, such as perfect competitive markets provide.
The actual interaction, however, runs contrary to a catallactic
process: In catallactics
, the offering party endeavors to contract in order to obtain a certain good in exchange for another good.
Capitalism" and "the free market," for example, describe the catallactic
conditions that arise or are permitted in a libertarian society, but they do not encompass other aspects of libertarianism.
They are part of the broadly catallactic
tradition in economics, or what Boettke (2007) refers to as the "mainline" of economics (as opposed to the "mainstream").
The term entrepreneur as used in catallactic
theory ["the theory of exchange ratios and prices"] means: acting man exclusively seen from the aspect of the uncertainty inherent in every action.