price theory


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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 ?
Moreover, the Blackmun opinion signals that defendants should no longer rely on Matsushita's commitment to neoclassical price theory, by characterizing Kodak's reliance on such theory as the mistaken view that "if a moving party enunciates any economic theory supporting its behavior, regardless of its accuracy in reflecting the actual market, it is entitled to summary judgment."(15) For the Kodak Court, price theory became just "any economic theory." In a summary proceeding, inferences from price theory were now inadequate unless supported by facts.
"In a nutshell, the two main characteristics of Chicago School adherents are (1) belief in the power of neoclassical price theory to explain observed economic behavior and (2) belief in the efficacy of free markets to allocate resources and distribute income." [18]
[b]ecause it seeks to explain prices as the outcome of a unitary valuation process that includes money, causal-realist price theory holds the following data constant in deriving the individual demand curve: 1.
We have contributed to the literature on bundled products, reference price theory, and consumers' postpromotion perception of supplementary products' price.
The corruption from free money is elementary price theory, denied by many economists who, as Bauer elsewhere remarked in one of his stiletto footnotes, believe that "acceptance of nonsense may be necessary for participation in political decisions" (Bauer 1975: 312n29).
The macroeconomic aspects of price theory are discussed in Chapter 3.
While we have made significant progress in price theory and applications, there is a lot we don't know and a large scope for future research.
(1998) Post Keynesian Price Theory, Cambridge: Cambridge University Press.
Even at this time the weakness of limit price theory shows, in the case that the market structure was made accurately, even with a precise model for conduct, scientifically there is no way to confirm performance.
But this critique exists only in the writings of behavioral scholars, who conjure an image sharply at odds with the reality of price theory. The perfect-competition model is an abstraction used to facilitate analysis, not a description of every bit of economic life.
KEY WORDS: price theory, nonprice considerations, 2006 Merger Commentary, 2010 Horizontal Merger Guidelines, behavioral economics learning, FTC I.
This is a reproduction of a classic text in economic analysis and price theory by Frank Hyneman Knight, one of the founders of the Chicago School.