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Price Behaviour and Business Behaviour

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  • Nitzan, Jonathan

Abstract

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.

Suggested Citation

  • 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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    File URL: https://www.econstor.eu/bitstream/10419/157851/1/bna-160_900101N_Price_behaviour_and_business_behaviour.pdf
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    References listed on IDEAS

    as
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    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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