The second volume in Liberty Fund's The Collected Works of Israel M. Kirzner series, Market Theory and the Price System was published in 1963 as Kirzner's first (and only) textbook. This volume presents an integrated view of Austrian price theory. The basic aim of Market Theory is to utilize the tools of economic reasoning to explain the market process. The unique framework Kirzner develops for microeconomic analysis, following Mises and Hayek, examines errors in decision-making, entrepreneurial profit, and competition as a process of discovery and learning.Peter J. Boettke is the BB&T Professor for the Study of Capitalism at the Mercatus Center and a University Professor of economics at George Mason University. Since 1988 he has been the editor of the Review of Austrian Economics.Frederic Sautet is a Senior Research Fellow at the Mercatus Center and a member of the graduate faculty at George Mason University.