The classical notion of competition revisited
The paper seeks to fill a lacuna within Classical economics concerning the process of market price determination in a short-period equilibrium. To this aim, first we distinguish the Classical notion of free competition from the Walrasian notion of perfect competition and we argue that the latter is beset by some theoretical difficulties alien to the former. Second, we reconstruct in some detail Smith and Marx’s views concerning market price determination and we show that Marx’s extensive use of metaphors and numerical examples foreshadows the modern taxonomy of buyers’ market, sellers’ market and mixed strategy equilibrium in the capacity space of a standard Bertrand duopoly model. Finally, we highlight similarities and differences between the Classical notion of competition and contemporary game-theoretic oligopoly models
|Date of creation:||17 May 2010|
|Date of revision:||17 May 2010|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
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.:
- Kurz,Heinz D. & Salvadori,Neri, 1995.
"Theory of Production,"
Cambridge University Press, number 9780521443258.
- Andrea Lavezzi, 2003. "Smith, Marshall and Young on division of labour and economic growth," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 10(1), pages 81-108.
- Heinz D. Kurz & Neri Salvadori, 2002. "Mark Blaug on the “Sraffian Interpretation of the Surplus Approach”," History of Political Economy, Duke University Press, vol. 34(1), pages 225-236, Spring.
- Garegnani, Pierangelo, 1983. "The Classical Theory of Wages and the Role of Demand Schedules in the Determination of Relative Prices," American Economic Review, American Economic Association, vol. 73(2), pages 309-13, May.
- Clarence C. Morrison, 2001. "Magnan de Bornier on Cournot-Bertrand," History of Political Economy, Duke University Press, vol. 33(1), pages 161-165, Spring.
- Paul J. McNulty, 1967. "A Note on the History of Perfect Competition," Journal of Political Economy, University of Chicago Press, vol. 75, pages 395.
- Clarence Morrison, 1998. "Cournot, bertrand, and modern game theory," Atlantic Economic Journal, International Atlantic Economic Society, vol. 26(2), pages 172-174, June.
- Mark Blaug, 1999.
"Misunderstanding Classical Economics: The Sraffian Interpretation of the Surplus Approach,"
History of Political Economy,
Duke University Press, vol. 31(2), pages 213-236, Summer.
- Blaug, M., 1998. "Misunderstanding Classical Economics - The Sraffian Interpretation of the Surplus Approach," Discussion Papers 9802, Exeter University, Department of Economics.
- Nicola GIOCOLI, 2005. "Modeling Rational Agents The Consistency View Of Rationality And The Changing Image Of Neoclassical Economics," Cahiers d’économie politique / Papers in Political Economy, L'Harmattan, issue 49, pages 177-208.
- Dumenil, Gerard & Levy, Dominique, 1987. "The Dynamics of Competition: A Restoration of the Classical Analysis," Cambridge Journal of Economics, Oxford University Press, vol. 11(2), pages 133-64, June.
- Vickers, John, 1995. "Concepts of Competition," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 1-23, January.
- Heinz Kurz & Neri Salvadori, 2000. "'Classical' Roots of Input-Output Analysis: A Short Account of its Long Prehistory," Economic Systems Research, Taylor & Francis Journals, vol. 12(2), pages 153-179.
- Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-55, December.
- Samuelson, Paul A, 1978. "The Canonical Classical Model of Political Economy," Journal of Economic Literature, American Economic Association, vol. 16(4), pages 1415-34, December.
- Garegnani, Pierangelo, 1984. "Value and Distribution in the Classical Economists and Marx," Oxford Economic Papers, Oxford University Press, vol. 36(2), pages 291-325, June.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:22760. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.