The major competing view, most frequently espoused by the Austrian school, dismisses neoclassical static equilibrium as unrealistic and fatally flawed. Instead, Austrian economics opts for an analysis based on logical deduction, using the twin principles of spontaneous order and subjectivism. Rather than assuming away heterogeneity and imperfection, the Austrian model describes how economic incentives help individuals overcome the real problems of ignorance and uncertainty. In other words, markets arise because people have incomplete knowledge, different preferences and other imperfections.
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