Khan, M. Ali Khan (2007): Perfect Competition. Published in:
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In his 1987 entry on ‘Perfect Competition’ in The New Palgrave, the author reviewed the question of the perfectness of perfect competition, and gave four alternative formalisations rooted in the so-called Arrow-Debreu-Mckenzie model. That entry is now updated for the second edition to include work done on the subject during the last twenty years. A fresh assessment of this literature is offered, one that emphasises the independence assumption whereby individual agents are not related except through the price system. And it highlights a ‘linguistic turn’ whereby Hayek’s two fundamental papers on ‘division of knowledge’ are seen to have devastating consequences for this research programme.
| Item Type: | MPRA Paper |
|---|---|
| Language: | English |
| Keywords: | Allocation of Resources; Perfect Competition; Exchange Economy |
| Subjects: | D - Microeconomics > D0 - General > D00 - General |
| ID Code: | 2202 |
| Deposited By: | Zafar Javed Naqvi |
| Deposited On: | 12. Mar 2007 |
| Last Modified: | 07. Nov 2007 02:19 |
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