IDEAS home Printed from https://ideas.repec.org/a/eej/eeconj/v16y1990i3p197-207.html
   My bibliography  Save this article

Classical and Neoclassical Elements in Industrial Organization

Author

Listed:
  • Mark Glick

    (University of Utah)

  • Eduardo M. Ochoa

    (California State University, Los Angeles)

Abstract

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.

Suggested Citation

  • Mark Glick & Eduardo M. Ochoa, 1990. "Classical and Neoclassical Elements in Industrial Organization," Eastern Economic Journal, Eastern Economic Association, vol. 16(3), pages 197-207, Jul-Sep.
  • Handle: RePEc:eej:eeconj:v:16:y:1990:i:3:p:197-207
    as

    Download full text from publisher

    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume16/V16N3P197_207.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Qualls, David, 1972. "Concentration, Barriers to Entry, and Long Run Economic Profit Margins," Journal of Industrial Economics, Wiley Blackwell, vol. 20(2), pages 146-158, April.
    2. 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 233-251, June.
    3. 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.
    4. 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 137-151, June.
    5. 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.
    6. Mueller,Dennis C., 2009. "Profits in the Long Run," Cambridge Books, Cambridge University Press, number 9780521101592, May.
    7. Hahn, Frank, 1982. "The Neo-Ricardians," Cambridge Journal of Economics, Oxford University Press, vol. 6(4), pages 353-374, December.
    8. 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 493-499, October.
    9. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    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: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). General contact details of provider: http://edirc.repec.org/data/eeaa1ea.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.