Ludwig von Mises and F.A. Hayek, two of the best-known Austrian school economists in the twentieth century, may have followed the same school of thought, but they greatly differed in their work. In consideration of human action, the two men differed in their methodology: Mises advocated for a pure use of reason through praxeology, and Hayek, alternatively, defended the compositive method.
In regard to the market process and entrepreneurship, Mises’s and Hayek’s views are not just different, but opposed. Hayek, in his articles “Economics and Knowledge“ and “The Use of Knowledge in Society,” highlighted the role of knowledge in the social process and how the price system is an institution that spreads information over the markets. Mises, on the other hand, asserted
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