Economic models are founded in the idea of taking individuals' preferences as both known and given. This article explores the evolution of personal preferences, within a context of both entrepreneurial discovery and Objectivist philosophy. It begins by formalizing Ayn Rand's theory of Objectivism applied to human values, and continues by modeling preference changes similar to Schumpeter's theory of creative destruction—a process of self-discovery. Next the role of societal factors is examined in forming shared preference sets. Finally, the article describes how (...) the strength of human preferences is used to narrow choice sets in the presence of greater consumption options. (shrink)

: The purpose of this paper is to address from a normative perspective issues raised by John Mueller in Redeeming Economics: Rediscovering the Missing Element. Mueller criticizes economists, including Austrians, for failing to properly address unilateral transfers—in particular, charity, childcare, and crime—in economic thought. Mueller challenges economist Gary Becker’s position that giving increases the […] The post “Charity, Childcare, and Crime: From Objectivist Ethics to the Austrian School” appeared first on Libertarian Papers.

This paper reviews some points of agreement between Objectivism and the Austrian school of economics. It also discusses some of my points of departure with Objectivism. One such is Rand’s justification for holding life as man’s ultimate value. I present a case that the recognition of death’s inevitability is needed to establish life as man’s ultimate value. Although death’s inevitability is implicit within Objectivist ethics (in its emphasis on a person’s entire life), the focus of Rand’s discussion of the ultimate (...) value is on life’s contingency, not its limitedness. I present an example comparing a being with a contingent and limited life to a being with a contingent but potentially endless life. This illustrates the function of life’s limitedness in valuation. I qualify my position somewhat by exploring one way in which a being with a contingent but potentially endless life may value his life as a whole. I also explain that a being with an endless life might have no ultimate value, but could have an endless number of goals. Finally, I discuss a desert-island scenario that supports the noninterference principle. (shrink)