Abstract

In this chapter, the position of market socialists is critically analyzed from the Austrian point of view. First, the definition of socialism is introduced, based on the concept of institutional coercion acting on Kirznerian entrepreneurship. Second is a review of the different aspects of the theorem of the impossibility of socialism, as it was originally developed by Mises and Hayek. Then market socialism is defined and studied, along with the main contributions of its sponsors. A special analytical treatment is provided on the classical model of market socialism from Oskar Lange and its main perpetuators during the twentieth century. Finally, the chapter analyzes the implicit contradiction of market socialism which also affects its most modern varieties and authors. The conclusion is that the position of market socialists is naive and paradoxical.