Carl Menger's theory of price formulation reconsidered

An analysis of Chapter 5 of Carl Menger's 'Principles of Economics' reveals the originality in his approach to market economics. Among the topics addressed are his methodologies, notions of equilibrium, the formation of product prices in a decentralized economy, competition among buyers for a single unit of a monopolizing good, active monopoly pricing and full competition with special reference to seller's competition. Menger's analysis of price formation is unique as he ignores the Walarasian assumption of interdependence of markets and analyzes price in a single market.