what is the difference between chicago school economics and austrian school?

[Mr Economist]

The Austrian school is far less static in its asasumptions than the Chicago school. For example, the Austrian school rejects the idea of equilibrium (where supply and demand are equal) as factors such as these are constantly changing.

The Austrian school assumes people do not have perfect information, i.e. knowledge is limited and thus individuals cannot possibly know fully the implications of their decisions. The Chicago model accepts the idea of perfect competition as perfect knowledge is assumed but the Austrian model acknowledges that knowledge is finite and no one possesses perfect knowledge. Therefore, the market is not perfectly competitive and some firms have managed to achieve market power through superior use of knowledge.

To conclude, the Chicago school is much more static and theoretical in its assumptions, and the Austrian school is much more dynamic and realistic.