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Price Behaviour and Business Behaviour


  • Nitzan, Jonathan


The present essay is the second in a series of three papers which examine alternative approaches to inflation. Here we identify some of the principal criticisms expressed against neoclassical views on price behaviour and business behaviour. These challenges grew from the early discovery of ‘administered prices’ by Means and the subsequent findings by Hall and Hitch regarding ‘full cost’ pricing. The notions that industrial prices were relatively inflexible and that businessmen set those prices by imprecise rules of thumb stood in sharp contrast to the pristine simplicity of neoclassical models. Yet these attempts for greater realism seemed to undermine the prospects of constructing a coherent theory for prices.

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  • Nitzan, Jonathan, 1990. "Price Behaviour and Business Behaviour," EconStor Preprints 157851, ZBW - Leibniz Information Centre for Economics.
  • Handle: RePEc:zbw:esprep:157851

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    References listed on IDEAS

    1. Joan Robinson, 1966. "An Essay on Marxian Economics," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-15228-5, March.
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    3. Skinner, R C, 1970. "The Determination of Selling Prices," Journal of Industrial Economics, Wiley Blackwell, vol. 18(3), pages 201-217, July.
    4. Frederick C. Mills, 1927. "The Behavior of Prices," NBER Books, National Bureau of Economic Research, Inc, number mill27-1, January.
    5. George J. Stigler & James K. Kindahl, 1970. "The Behavior of Industrial Prices," NBER Books, National Bureau of Economic Research, Inc, number stig70-1, January.
    6. 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.
    7. R. L. Hall & C. J. Hitch, 1939. "Price Theory And Business Behaviour," Oxford Economic Papers, Oxford University Press, vol. 0(1), pages 12-45.
    8. Silberston, Aubrey, 1970. "Surveys of Applied Economics: Price Behaviour of Firms," Economic Journal, Royal Economic Society, vol. 80(319), pages 511-582, September.
    9. Nitzan, Jonathan, 1990. "Inflation and Market Structure," EconStor Preprints 157852, ZBW - Leibniz Information Centre for Economics.
    10. Milton Moore, 1972. "Stigler on Inflexible Prices," Canadian Journal of Economics, Canadian Economics Association, vol. 5(4), pages 486-493, November.
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