IDEAS home Printed from https://ideas.repec.org/h/eee/indchp/1-15.html

The theory and the facts of how markets clear: Is industrial organization valuable for understanding macroeconomics?

In: Handbook of Industrial Organization

Author

Listed:
  • Carlton, Dennis W.

Abstract

6. SummaryThis chapter has presented a survey of what industrial economists know about how markets clear. The evidence on price behavior is sufficiently inconsistent with the simple theories of market clearing that industrial economists should be led to explore other paradigms. The most useful extensions of the theory will be those that recognize that marketing is a costly activity, that an impersonal price mechanism is not the only device used to allocate goods, and that price methods in conjunction with non-price methods are typically used to allocate goods.Exactly what macroeconomists can learn from all this is less clear to me. Since both macroeconomists and industrial economists are interested in the same question of how markets clear, I have no doubt that there is the potential for the two groups to influence each other's research. Whether that potential is realized depends in part on how some of the new areas of research in industrial organization develop.

Suggested Citation

  • Carlton, Dennis W., 1989. "The theory and the facts of how markets clear: Is industrial organization valuable for understanding macroeconomics?," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 15, pages 909-946, Elsevier.
    • Handle: RePEc:eee:indchp:1-15
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/B7P5S-4FD79WP-M/2/37461989a93ade85d620e1adac630be0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    More about this item

    JEL classification:

    • L0 - Industrial Organization - - General

    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:eee:indchp:1-15. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description .

    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.