High-frequency trading: Menger vs. Walras

posted by
March 8, 2012
Ludwig von Mises Institute
by John Paul Koning  
Posted in Commentary

"While Carl Menger and Léon Walras simultaneously discovered the principle of marginal utility, their ideas about the nature of market prices are very different. Walras was more interested in the final equilibrium prices arrived at by traders than the process by which these prices were formed. Therefore, he dramatically simplified the pricing process by imagining it as if it were governed by an auction mechanism capable of instantly calculating all prices in an economy." (03/08/12)


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