Ross, Bruce W. (1996): Towards an observational economics of business behaviour: the horizontal supply curve, 'fuzzy' demand and other anomalies for conventional theory. Published in: Working Papers in Economics, Department of Economics, The University of Sydney No. No. 234 : pp. 1-15.
Download (131kB) | Preview
This paper proposes the development of an 'observational economics' whose domain would be restricted to what is observable in the real world. Observational economics should be regarded as a separate but complementary undertaking to mainstream economics. Adoption of such an approach would enhance the reestablishment and development of interaction between economists and the business community. Phenomena such as price setting, unpredictable and variable demand, and inventories and order backlogs are argued to be anomalous from the viewpoint of conventional microeconomics, but fundamental to an observational perspective on business behaviour. A basic observational model of price and output determination for the price setting manufacturing firm is outlined.
|Item Type:||MPRA Paper|
|Original Title:||Towards an observational economics of business behaviour: the horizontal supply curve, 'fuzzy' demand and other anomalies for conventional theory|
|Keywords:||observational economics; business behaviour; horizontal supply curve; fuzzy demand; inventories; order backlogs|
|Subjects:||D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory
B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B59 - Other
|Depositing User:||Bruce W. Ross|
|Date Deposited:||17. Nov 2010 21:11|
|Last Modified:||19. Feb 2013 03:49|
Andrews, P.W.S., ''A Reconsideration of the Theory of the Individual Business," Oxford Economic Papers, 1 (New Series), 1949a, 54-89.
Andrews, P.W.S., Manufacturing Business, London: Macmillan, 1949b.
Andrews, P.W.S., On Competition in Economic Theory, London: Macmillan, 1964.
Burns, Arthur R., The Decline of Competition: A Study of the Evolution of American Industry, New York: McGraw-Hill, 1936, 197-206.
Carlton, Dennis W., "Market Behavior with Demand Uncertainty and Price Inflexibility," American Economic Review, 1978, 68, 571-88.
Carlton, Dennis W., Market Behavior under Uncertainty, New York: Garland Press, 1984.
Cyert, R.M. and Hedrick, C.L., "Theory of the Firm: Past, Present and Future; An Interpretation," Journal of Economic Literature, 1972, 10, 398-412.
Eichner, Alfred S., The Megacorp and Oligopoly: Micro Foundations of Macro Dynamics, New York: Cambridge U.P., 1976.
Eichner, Alfred S., "Why Economics is not yet a Science," ch. 9 in A. S. Eichner ed., Why Economics is not yet a Science, London: MacMillan, 1983.
Eichner, A.S. and Kregel, J.A., "An Essay on Post-Keynesian Theory: A New Paradigm in Economics," Journal of Economic Literature, 1975, 13, 1293-1314.
Eiteman, Wilford J., Price Determination: Business Practice versus Economic Theory, Research Report No. 16, Ann Arbor, Mich: Bureau of Business Research, University of Michigan, 1949.
Gordon, R.A., ''Short-period Price Determination in Theory and Practice," American Economic Review, 1948, 38, 265-88.
Hall, R.L. and Hitch, C.J., ''Price Theory and Business Behaviour," Oxford Economic Papers, 1939, 2, 12-45.
Heflebower, Richard B., "Full Costs, Cost Changes, and Prices," in National Bureau of Economic Research, Business Concentration and Price Policy: A Conference of the Universities-National Bureau Committee for Economic Research, Princeton: Princeton U.P., 1955.
Heflebower, Richard B., ''Stability in Oligopoly,'' The Manchester School, 1961, 29, 79-93.
Kaldor, Nicholas, Economics without Equilibrium, Armonk, N.Y: M.E. Sharpe, 1985.
Lanzillotti, R.F., "Pricing Objectives of Large Companies,'' American Economic Review, 1958, 48, 921-40.
Machlup, Fritz, "Equilibrium and Disequilibrium: Misplaced Concreteness and Disguised Politics,'' Economic Journal, 1958, 68, 1-24.
Machlup, Fritz, ''Theories of the Firm: Marginalist, Behavioral, Managerial," American Economic Review, 1967, 57, 1-33.
Machlup, Fritz, Methodology of Economics and Other Social Sciences, New York: Academic Press, 1978.
Means, Gardiner C., "Industrial Prices and Their Relative Inflexibility,'' in The Corporate Revolution in America, New York: Crowell-Collier, 1962.
Mills, Edwin, "Uncertainty and Price Theory," Quarterly Journal of Economics, 1959, 73, 116-30.
Mueller, Dennis C., "The Corporation and the Economist,'' International Journal of Industrial Organization, 1992, 10, 147-70.
Mueller, Dennis C., "Business and Industrial Organisation Research: Synergy or Shotgun Marriage," Journal of the Economics of Business, 1994, 1, 27-30.
Okun, Arthur M., Prices and Quantities: A Macroeconomic Analysis, Washington, D.C.: Brookings Institution, 1981.
Robinson, Romney, "The Economics of Disequilibrium Price," Quarterly Journal of Economics, 1961. 75, 199-233.
Ruggles, Richard, "The Value of Value Theory," American Economic Association, Papers and Proceedings, 1954, 44, 140-51.
Scherer, Frederick M., Industrial Market Structure and Economic Performance, Chicago: Rand McNally, 1980.
Scitovsky, Tibor, Welfare and Competition: The Economics of a Fully Employed Economy, London: Unwin University Books, 1952.
Sylos-Labini, Paolo, Oligopoly and Technical Progress, translated by Elizabeth Henderson, Cambridge, Mass.: Harvard U.P., Revised Edition, 1969.
Tucker, Rufus S., "The Reasons for Price Rigidity,'' American Economic Review, 1938, 28, 41-54.
Wiles, P.J.D., Price, Cost and Output, Oxford: Basil Blackwell, 1961.
Zarnowitz, Victor, "Unfilled Orders, Price Changes, and Business Fluctuations," Review of Economics and Statistics, November 1962, 44:4, 367-92.