price theory


Also found in: Dictionary, Thesaurus, Medical, Encyclopedia, Wikipedia.

price theory

an integrative body of MICROECONOMIC theory concerned with the determination of the EQUILIBRIUM MARKET PRICES and quantities transacted of goods and service. See THEORY OF DEMAND, THEORY OF SUPPLY, THEORY OF MARKETS, THEORY OF CONSUMER BEHAVIOUR, THEORY OF THE FIRM.
References in periodicals archive ?
I expect also research to move away from price theory into design and organization, where most competition takes place.
1947) Price theory and oligopoly, Economic Journal, 57, pp.
Rather, they maintain that the impulse to maximize profit and utility--along with opportunities for learning, competitive pressures, and canceling-out effects--is sufficiently strong that the explanatory variables price theory highlights correlate in statistically significant fashion with actual market outcomes.
Price theory is not the only economic framework that purports to explain the origin and formation of non-standard contracts.
Chicago School's use of price theory and rational choice economics
In other words, realistic price theory explains how prices perform the function of conservation.
Frequently he mimes putting on a pair of eyeglasses (or removes his own for the purposes of his demonstration)--his price theory goggles--which, once affixed to his face, allow him to see what is of political-economic interest.
But, since the dominance of price theory, economics has envisaged a unilateral position of time where everything happens simultaneously.
By basing his arguments on the logic of price theory, Friedman kept debate on a high intellectual level.
Among his most famous books were Price Theory, 1962 (with Rose Friedman); Capitalism and Freedom, 1962 (with Anna J.
When I went to the University of Chicago for graduate study in 1959, I audited Milton's price theory course my first semester and later became a member of his justly famous Money Workshop.