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...the distinction between economic theories and their differing points of view regarding competition requires that one understand the most fundamental precepts of the theories being compared. For example, when one compares neoclassical and Austrian economic thinking, it is important to understand that an orthodox economic view such as that of neoclassical economics is characterized by the assumption of unique and standardized methodological individualism. On the other hand, the Austrian school of economic thought is one that makes certain that there is no potential for tunnel vision. The Austrian framework does not hold with
too narrow of a focus on individual actions but directs attention toward how an entire economic system functions.
Basics of Neoclassic Economics
Boyer and Smith (2001) explain that neoclassical economics began in the late nineteenth century as a challenge to the classical economics of David Ricardo and John Stuart Mill (pp. 199). The neoclassic economist mindset pays a greater level of attention to the role of personal choice and therefore compares the processes that take place as that choice has an impact on the free market. An important...