The Austrian economics or Austrian school is a heterodox school of economic thought that is based on methodological individualism—the concept that social phenomena result exclusively from the motivations and actions of individuals.
The Austrian School theorizes that individuals’ subjective choices, including individual knowledge, time, expectation, and other subjective factors, cause all economic phenomena.
Austrians seek to understand the economy by examining the social ramifications of individual choice, an approach called methodological individualism.
It differs from other schools of economic thought, which have focused on aggregate variables, equilibrium analysis and societal groups rather than individuals.
All rational action is in the first place individual action. Only the individual thinks. Only the individual reasons. Only the individual acts.