Towards an observational economics of business behaviour: the horizontal supply curve, 'fuzzy' demand and other anomalies for conventional theory
This paper proposes the development of an 'observational economics' whose domain would be restricted to what is observable in the real world. Observational economics should be regarded as a separate but complementary undertaking to mainstream economics. Adoption of such an approach would enhance the reestablishment and development of interaction between economists and the business community. Phenomena such as price setting, unpredictable and variable demand, and inventories and order backlogs are argued to be anomalous from the viewpoint of conventional microeconomics, but fundamental to an observational perspective on business behaviour. A basic observational model of price and output determination for the price setting manufacturing firm is outlined.
|Date of creation:||1996|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
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.:
- D. W. Carlton, 1976.
"Market Behavior With Demand Uncertainty and Price Inflexibility,"
179, Massachusetts Institute of Technology (MIT), Department of Economics.
- Carlton, Dennis W, 1978. "Market Behavior with Demand Uncertainty and Price Inflexibility," American Economic Review, American Economic Association, vol. 68(4), pages 571-87, September.
- Mueller, Dennis C., 1992. "The corporation and the economist," International Journal of Industrial Organization, Elsevier, vol. 10(2), pages 147-170, June.
- Romney Robinson, 1961. "The Economics of Disequilibrium Price," The Quarterly Journal of Economics, Oxford University Press, vol. 75(2), pages 199-233.
- Eichner, Alfred S & Kregel, J A, 1975. "An Essay on Post-Keynesian Theory: A New Paradigm in Economics," Journal of Economic Literature, American Economic Association, vol. 13(4), pages 1293-1314, December.
- P. W. S. Andrews, 1949. "A Reconsideration Of The Theory Of The Individual Business," Oxford Economic Papers, Oxford University Press, vol. 1(1), pages 54-89.
- Edwin S. Mills, 1959. "Uncertainty and Price Theory," The Quarterly Journal of Economics, Oxford University Press, vol. 73(1), pages 116-130.
- Victor Zarnowitz, 1962. "Unfilled Orders, Price Changes, and Business Fluctuations," NBER Books, National Bureau of Economic Research, Inc, number zarn62-1.
- Richard B. Heflebower, 1955. "Full Costs, Cost Changes, and Prices," NBER Chapters, in: Business Concentration and Price Policy, pages 361-396 National Bureau of Economic Research, Inc.
- Dennis Mueller, 1994. "Business and Industrial Organization Research: Synergy or Shotgun Marriage?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 27-30.
- Cyert, Richard M & Hedrick, Charles L, 1972. "Theory of the Firm: Past, Present, and Future; An Interpretation," Journal of Economic Literature, American Economic Association, vol. 10(2), pages 398-412, June.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:26783. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.