The Origin of the Sylos Postulate: Modigliani's and Sylos Labini's Contributions to Oligopoly Theory
AbstractPaolo Sylos Labini's Oligopoly Theory and Technical Progress (1957) is considered one of the major contributions to entry-prevention models, especially after Franco Modigliani's famous formalization. Nonetheless, Modigliani neglected Labini's major aim when reviewing his work (JPE, 1958), particularly his demonstration of the dynamic relation between industrial concentration and economic development. Modigliani addressed only Sylos' microeconomic analysis and the determination of the long-run equilibrium price and output, concentrating on the role played by firms' anticipations. By doing so he shifted attention from Sylos' objective analysis to a subjective approach to oligopoly problem. This paper discusses Sylos' and Modigliani's differing approaches, derives the origin of the Sylos postulate and sets Modigliani's interpretation of Sylos' oligopoly theory in the context of his 1950s research into firms' behaviour under uncertainty.
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Bibliographic InfoPaper provided by University of Molise, Dept. SEGeS in its series Economics & Statistics Discussion Papers with number esdp12070.
Date of creation: 19 Nov 2012
Date of revision:
Modigliani; Sylos Labini; Sylos Postulate; Oligopoly Theory;
Find related papers by JEL classification:
- B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Stockholm School)
- B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
- B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-06 (All new papers)
- NEP-COM-2012-12-06 (Industrial Competition)
- NEP-HIS-2012-12-06 (Business, Economic & Financial History)
- NEP-HME-2012-12-06 (Heterodox Microeconomics)
- NEP-HPE-2012-12-06 (History & Philosophy of Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Franco Modigliani, 1959. "New Developments on the Oligopoly Front: Reply," Journal of Political Economy, University of Chicago Press, vol. 67, pages 418.
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- Donald E. Farrar & Charles F. Phillips & Jr., 1959. "New Developments on the Oligopoly Front: A Comment," Journal of Political Economy, University of Chicago Press, vol. 67, pages 414.
- Alessandro Roncaglia, 2007. "Il pensiero economico di Paolo Sylos Labini," Economia & Lavoro, Fondazione Giacomo Brodolini, issue 3, pages 23.
- George J. Stigler, 1947. "The Kinky Oligopoly Demand Curve and Rigid Prices," Journal of Political Economy, University of Chicago Press, vol. 55, pages 432.
- Osborne, D K, 1973. "On the Rationality of Limit Pricing," Journal of Industrial Economics, Wiley Blackwell, vol. 22(1), pages 71-80, September.
- Roger Sherman & Thomas D. Willett, 1967. "Potential Entrants Discourage Entry," Journal of Political Economy, University of Chicago Press, vol. 75, pages 400.
- Pyatt, F Graham, 1971. "Profit Maximisation and the Threat of New Entry," Economic Journal, Royal Economic Society, vol. 81(322), pages 242-55, June.
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