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Subjective aspects of pricing- economic role of entrepreneur

Adam Smith must have emphasized more strongly how his Wealth of Nations drew concepts and inspiration by Richard Cantillon’s Essai. Now today’s perspective that the Wealth of Nations would considered even more profound when Smith had also borrowed Cantillon’s insights within: (1) Aggregate Demand like a determinant of national income, and relative productivity like the basis for international trade. (2) representative government and market capitalism like foundations for democracy. (3) decisions at the margin, and the irrelevance of fixed costs for rational decisionmaking. (4) saving and investment like critical for capital formation and economic development. (5) subjective aspects of pricing and the economic function of the entrepreneur.

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