Classical and Neoclassical Elements in Industrial Organization
Industrial organization studies of pricing are examined, focusing on the formative debates of 1950-70. It is argued that most of these studies unknowingly adopted a mixture of classical and neoclassical theory, leading to three types of confusions. First, over what measure of profitability is equalized in competitive equilibrium. Second, over what period of time profitability differentials must be studied. Third, over the correct conclusions to be drawn for industry phenomena from firm studies of profitability. The paper concludes by questioning the practicability of a purely neoclassical theoretical grounding for industrial economists, since they abandon this approach in their empirical work.
Volume (Year): 16 (1990)
Issue (Month): 3 (Jul-Sep)
|Contact details of provider:|| Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA|
Phone: (201) 684-7346
Web page: https://www.quinnipiac.edu/eea/
More information through EDIRC
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.:
- Novshek, William & Sonnenschein, Hugo, 1987.
"General Equilibrium with Free Entry: A Synthetic Approach to the Theory of Perfect Competition,"
Journal of Economic Literature,
American Economic Association, vol. 25(3), pages 1281-1306, September.
- Novshek, William & Sonnenschein, Hugo., 1983. "General Equilibrium with Free Entry: A Synthetic Approach to the Theory of Perfect Competition," Working Papers 497, California Institute of Technology, Division of the Humanities and Social Sciences.
- Shaikh, Anwar, 1978. "Political Economy and Capitalism: Notes on Dobb's Theory of Crisis," Cambridge Journal of Economics, Oxford University Press, vol. 2(2), pages 233-51, June.
- Mueller,Dennis C., 1986.
"Profits in the Long Run,"
Cambridge University Press, number 9780521306935, November.
- R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," Review of Economic Studies, Oxford University Press, vol. 24(1), pages 11-32.
- Dumenil G & Levy Dominique, 1984. "Dynamics of competition (the). a restoration of the classical analysis," CEPREMAP Working Papers (Couverture Orange) 8416, CEPREMAP.
- Kirman, Alan P., 2000. "Measure theory with applications to economics," Handbook of Mathematical Economics, in: K. J. Arrow & M.D. Intriligator (ed.), Handbook of Mathematical Economics, edition 4, volume 1, chapter 5, pages 159-209 Elsevier.
- Qualls, David, 1972. "Concentration, Barriers to Entry, and Long Run Economic Profit Margins," Journal of Industrial Economics, Wiley Blackwell, vol. 20(2), pages 146-58, April.
- MacAvoy, Paul W & McKie, James W & Preston, Lee E, 1971. "High and Stable Concentration Levels, Profitability, and Public Policy: A Response," Journal of Law and Economics, University of Chicago Press, vol. 14(2), pages 493-99, October.
- Clifton, James A, 1977. "Competition and the Evolution of the Capitalist Mode of Production," Cambridge Journal of Economics, Oxford University Press, vol. 1(2), pages 137-51, June.
- Hahn, Frank, 1982. "The Neo-Ricardians," Cambridge Journal of Economics, Oxford University Press, vol. 6(4), pages 353-74, December.
When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:16:y:1990:i:3:p:197-207. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross)
If references are entirely missing, you can add them using this form.