Lee, Frederic (2011): Old controversy revisited: pricing, market structure, and competition.
Download (148Kb) | Preview
In this essay, I examine the connection between pricing, profit mark ups, competition, and economic activity from a heterodox perspective. These issues are examined utilizing a two-industry Burchardt-Kaleckian production model and a labor-based mark up pricing model; the conclusion reached is that market structure and competition have no fundamental role in affecting pricing, profit mark ups, or economic activity. However, it is generally perceived in heterodox economics that competition does play an important role in the economy. This theme is discussed in conjunction with the going business enterprise.
|Item Type:||MPRA Paper|
|Original Title:||Old controversy revisited: pricing, market structure, and competition|
|Keywords:||Heterodox; Pricing; Competition|
|Subjects:||D - Microeconomics > D4 - Market Structure and Pricing
B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches
|Depositing User:||Frederic Lee|
|Date Deposited:||04. May 2011 13:31|
|Last Modified:||15. Feb 2013 19:46|
Baran, P. and Sweezy, P. M. (1966), Monopoly Capitalism, New York: Monthly Review Press.
Blinder, A. S., Canetti, E. R. D., Lebow, D. E., and Rudd, J. B. (1998), Asking About Prices: a new approach to understanding price stickiness, New York: Russell Sage Foundation.
Commons, J. R. (1957) Legal Foundations of Capitalism, Madison: The University of Wisconsin Press.
Downward, P., Lavoie, M., Reynolds, P. (1996), ‘Realism, Simulations and Post-Keynesian Pricing Models: A response to Lee’, Review of Political Economy, 8 (4), pp. 427-32.
Downward, P., Reynolds, P. (1996), ‘Alternative Perspectives on Post-Keynesian Price Theory’, Review of Political Economy, 8 (1), pp. 67-78.
Fabiani, S., Loupias, C. S., Martins, F. M. M., and Sabbatini, R. (2007), Pricing Decisions in the Euro Area: How firms set prices and why, New York: Oxford University Press.
Gu, G. and Lee, F. S. (Forthcoming), ‘Pricing and Prices,’ in J. King, The Elgar Companion to Post Keynesian Economics, 2nd edition. Edward Elgar.
Kaufman, B. E. (2006), ‘The Institutional Economics of John R. Commons: complement and substitute for neoclassical economic theory’, Socio-Economic Review, 5(1): 3-45.
Lavoie, M. (1996), ‘Mark-up Pricing versus Normal Cost Pricing in Post-Keynesian Models,’ Review of Political Economy, 8 (1), pp. 57-66.
Lee, F. S. (1990-91a), ‘Introduction.’ Journal of Post Keynesian Economics, 13(2), pp. 233-35.
Lee, F. S. (1990-91b), ‘Marginalist Controversy and Post Keynesian Price Theory.’ Journal of Post Keynesian Economics, 13(2), pp. 252-63.
Lee, F. S. (1994), ‘From Post-Keynesian to Historical Price Theory, part I: Facts, theory and empirically grounded pricing model,’ Review of Political Economy, 6 (3), pp. 303-36.
Lee, F. S. (1995), ‘From Post-Keynesian to Historical Price Theory, part II,’ Review of Political Economy, 7(1), pp. 72-124.
Lee, F. S. (1996), ‘Pricing, the Pricing Model and Post-Keynesian Price Theory,’ Review of Political Economy, 8 (1), pp. 87-99.
Lee, F. S. (1998), Post Keynesian Price Theory. Cambridge: Cambridge University Press.
Lee, F. S. (2011), ‘Heterodox Surplus Approach: Production, Prices, and Value Theory.’ Unpublished.
McDonough, T. (1994), ‘Social Structures of Accumulation, Contingent History, and Stages of capitalism’, D. M. Kotz, T. McDonough, and M. Reich, Social Structures of Accumulation. Cambridge: Cambridge University Press.
Miller, R. E. and Blair, P. D. (2009), Input-Output Analysis: Foundations and Extensions. 2nd. Edition. Cambridge: Cambridge University Press.
Moudud, J. K. (2010), Strategic Competition, Dynamics, and the Role of the State. Cheltenham: Edward Elgar.
Ramstad, Y (2001) ‘John R. Commons’s Reasonable Value and the Problem of Just Price’, Journal of Economic Issues, 35(2): 253-77.
Sterling, R. R. (1968), ‘The Going Concern: an examination’, The Accounting Review, 43(3): 481–502.
Storey, R. K. (1959), ‘Revenue Realization, Going Concern, and Measurement of Income’, The Accounting Review, 34(2): 232–38.
Veblen, T. (1904), The Theory of Business Enterprise, New York: Charles Scribner’s Sons.