In the Austrian school of economics, which was founded in 1871 with the publication of Carl Menger’s Principles of Economics, the never before mention of self-interest was developed for the first time, upending the German school of economic thought. Menger, along with his cohorts William Stanley Jevons and Leon Walras, developed a marginalist revolution in economic analysis. In his book, Menger argued that economic analysis is universally applicable and that the appropriate unit of analysis is man and his choices. These choices, he wrote, are determined by individual subjective preferences and the margin on which decisions are made.
For many of us, the idea of economic competition takes place in markets when the meeting grounds of intending suppliers and buyers join together in a transaction. Typically, a few sellers compete to attract favorable offers from prospective buyers. Similarly, intending buyers compete to obtain good offers from suppliers. When a contract is concluded, the buyer and seller exchange property rights in a good, service, or asset. Everyone interacts voluntarily, motivated by self-interest.
Today on the show we are joined by Bob Harris, a man who has exploited the concept of competition with his previous project Lending Tree, where he made famous the tagline; “When banks compete, you win”. Now he has taken that thinking, that spirit of competition to a new, more micro level, suggesting that the competition between utilities for your business is something you should consider. As so WhiteFence.com was born.