and Applications: Decisions, Markets, and Information.
I expect also research to move away from price theory
into design and organization, where most competition takes place.
Technically that is known as the limit price theory
in the old model of Cournot's Oligopoly.
1947) Price theory
and oligopoly, Economic Journal, 57, pp.
There he will not only find numerous striking parallels between military and (oligopolistic) business strategy, but also a general approach which - while much less elegant than traditional price theory
- promises a more realistic treatment of the oligopoly problem.
Conventional price theory
expects high rates of substitution and entry when information is abundant and symmetric and barriers to penetrating the market are low.
1) Over the last thirty-five years, the Supreme Court and the lower courts have frequently relied on the Chicago school's use of price theory
to help interpret the Sherman and Clayton Acts.
While some scholars, particularly from the "Chicago School," questioned these doctrinal results, their critique ironically rested upon a more precise account, also drawn from price theory
, of the market power model than scholars invoking the workable competition model had offered.
abandon revealed preference, or conventional price theory
, to justify
Second, there is no specification for any price theory
The pursuit of producer surplus is fundamental; it provides a useful way to conceptualize entrepreneurial behavior within the familiar framework of neoclassical price theory
Marglin's criticism of the market is rooted in a criticism of neoclassical price theory