IDEAS home Printed from https://ideas.repec.org/a/rau/journl/v1y2006i2p43-53.html
   My bibliography  Save this article

Economic calculation and welfare considerations in monopoly and firm theory

Author

Listed:
  • Diana Costea

    (University of Bucharest)

Abstract

The critical reaction of Austrian economists to the neoclassical monopoly theory could be explained by two major facts: this theory lacks definitional clarity, necessary for any serious theoretical analysis, and it contains a dangerous theory of welfare, which is not only incorrect, but tries to justify an aggressive intervention of the state into the realm of purely voluntary market exchanges. The neoclassical theory was, curiously enough, accepted in its main points by Ludwig von Mises, who displaced however the perfect competition as standard for evaluating the “imperfection” of monopoly. We will analyze the explicit and implicit welfare criteria that Mises employs in his theory.

Suggested Citation

  • Diana Costea, 2006. "Economic calculation and welfare considerations in monopoly and firm theory," Romanian Economic Business Review, Romanian-American University, vol. 1(2), pages 43-53, June.
    • Handle: RePEc:rau:journl:v:1:y:2006:i:2:p:43-53
    as

    Download full text from publisher

    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/SU06/REBE-SU06-A7.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Israel M. Kirzner & Comment by Gordon Tullock, 1999. "Mises and His Understanding of the Capitalist System," Cato Journal, Cato Journal, Cato Institute, vol. 19(2), pages 215-232, Fall.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Klein & Per Bylund, 2014. "The place of Austrian economics in contemporary entrepreneurship research," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 27(3), pages 259-279, September.
    2. Matthew McCaffrey & Nicolai J. Foss & Peter G. Klein & Joseph T. Salerno, 2023. "Breaking out of the Kirznerian box: A reply to Sautet," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 36(3), pages 1-21, September.
    3. Milan Říkovský, 2004. "Podnikatelství a konkurenční tržní proces v Rakouské škole a v díle J. A. Schumpetera [Entrepreneurship and the competitive market process in the Austrian school of economics and in the work of J. ," Politická ekonomie, Prague University of Economics and Business, vol. 2004(2), pages 165-189.
    4. Nicolai J. Foss & Peter G. Klein, 2010. "Alertness, Action, and the Antecedents of Entrepreneurship," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 25(Spring 20), pages 145-164.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rau:journl:v:1:y:2006:i:2:p:43-53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alex Tabusca (email available below). General contact details of provider: https://edirc.repec.org/data/ferauro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.