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The history of policymaking has been dominated by two rival assumptions about markets. Those who have advocated Keynesian-type policies have generally based their arguments on the claim that markets are imperfectly competitive. On the other hand laissez faire advocates have argued the opposite by claiming that in fact free market policies will eliminate "market imperfections" and reinvigorate perfect competition. The goal of this book is to enter into this important debate by raising critical questions about the nature of market competition.
Drawing on the insights of the classical political economists, Schumpeter, Hayek, the Oxford Economists’ Research Group (OERG) and others, the authors in this book challenge this perfect versus imperfect competition dichotomy in both theoretical and empirical terms. There are important differences between the theoretical perspectives of several authors in the broad alternative theoretical tradition defined by this book; nevertheless, a unifying theme throughout this volume is that competition is conceptualized as a dynamic disequilibrium process rather than the static equilibrium state of conventional theory. For almost all the others the growth of firm is consistent with a heightened degree of competitiveness, as both Marx and Schumpeter emphasized, and not a lowered one as in the conventional 'monopoly capital' view.
- Sales Rank: #2991480 in eBooks
- Published on: 2012-10-12
- Released on: 2012-10-12
- Format: Kindle eBook
Most helpful customer reviews
0 of 0 people found the following review helpful.
An antidote against neoclassical perfect competition
By Hendrik Bright
This book contains the best and the worst. All articles, by heterodox economists, give alternative theories to the mainstream nonsense of neoclassical economics. As most people - except economists - know, perfect competition is defined by neoclassical economists as a condition in which consumers and producers are price-takers. Everybody takes the price as defined by an auctioneer. Thus, perfect competition is absence of competition. Or an economy in which some central state defines the prices - which looks like communism!
Some very good contribution, like those from Weeks, Moudud and Metcalfe give an account of what competition is in reality. Others are no better than neoclassical theory, like those from Lazonick on his theory of the innovative enterprise or the contribution on Sraffa. Apart from those theoretical contribution, there are some case studies, that don't leave a lasting impression.
Still, the book is a must for all those who want to model the economy like it is in reality instead of finding a mathematical treatment that defies every description of reality, but is, as economists call it, internally consistent and mathematically correct.
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