Carl Menger

Carl Menger von Wolfensgrün (28 February 1840 – 26 February 1921) was an Austrian economist who is considered to be one of leaders of the 1870s "Marginalist Revolution". He formulated the subjective theory of value and further developed the theory of marginal utility.

His works on the analysis of entrepreneurship were not very famous than his works on individualism, money, and how institutions work. Unlike his contemporaries such as Stanley Jevons and Léon Walras, he founded a "school of thought" which is the Austrian school of economics.

Economics
He analyzed economics in a non-mathematical and non-graphical way. Unlike neoclassical economics, he analyze the order of the market in terms of dynamic processes, processes that always change, and not in terms of equilibria.

Intrinsic value means there is an objective value for that good or service. In his subjective theory of value, Menger believed that all goods and services has no intrinsic value. For example, although water is needed by all humans, the value we give to it such as price for a bottle of water is very subjective.

He also viewed money of having no intrinsic value. According to Menger, money was not invented because of its objective worth but because people need a way of exchanging things (Tauschmittel) so that goods can be moved (Güterverkehr). Additionally, Menger viewed gold and silver as a way of exchange because of how rare these things are.

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Category:1840 births
Category:1921 deaths
Category:Economists
Category:Austrian people