The Theory of Partonized Goods in the Optics of Comparative Methodology

Abstract

The present study focuses on aspects of Theory of patronized goods, modifications of two liberal principles of Austrian school, incorporated into mainstream economic theory - methodological subjectivism and methodological individualism, as well as standard axiom of homogeneity of economic agents. The paper discusses some modifications to these assumptions and their various combinations that form basis of a number of theories that justify state activity. Analysis of basic premises of theory of public goods and merit goods, and concept of libertarian paternalism allowed author to suggest that from point of view of methodology, these theoretical constructions are particular cases of Theory of patronized goods based on methodological subjectivism, methodological relativism and the principle of heterogeneity. In Theory of patronized goods they are integrated in form of supposition that every person depending on level of his understanding and his value judgments acts subjectively optimally in given circumstances; in principle of utility complementarity, according to which there may be a group interest alongside with individual interests of group members; and in form of two irreducible to each other branches of formation of public interest - market and political.