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The Institutionalists’ Reaction to Chamberlin’s 'Theory of Monopolistic Competition'

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Luca Fiorito ()
Abstract

Edwin Chamberlin's The Theory of Monopolistic competition is often described as containing omportant traces of institutionalist influence. This is also confimred by Chamberlin himself who, repeadetly, referred to the work of Veblen, and John Maurice Clark among his inspirational sources. The aim of this paper is to analyse the institutionalist rection to the publication of the Theory of Monopolistic Competition. What will be argued is that the institutionalist response to Chamberlin was a mixed one, and involved some substantial criticisms of his analysis of market structures both on methodological and theoretical grounds. The paper is organized as follows. The first section presents a sketch of the main theoretical implications contained in The Theory of Monopolistic Competition. The second section analyses the general aspects of the institutionalist reaction to Chamberlin. The third and fourth sections deal with the more theoretical aspects of the institutionalist criticism of Chamberlin. The final section presents a conclusion

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Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 560.

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Date of creation: Mar 2009
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Handle: RePEc:usi:wpaper:560

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B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian

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  1. Axel Leijonhufvud, 1983. "What Would Keynes Have Thought of Rational Expectations?," UCLA Economics Working Papers 299, UCLA Department of Economics. [Downloadable!]
  2. Pier Francesco Asso & Luca Fiorito, 2008. "Was Frank Knight an Institutionalist?," Review of Political Economy, Taylor and Francis Journals, vol. 20(1), pages 59-77. [Downloadable!] (restricted)
  3. Morris A. Copeland, 1934. "The Theory of Monopolistic Competition," Journal of Political Economy, University of Chicago Press, vol. 42, pages 531. [Downloadable!] (restricted)
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