Before getting into details, I want to say something about my objective and the general methodological background to it. This lecture is no mere revisionist exercise, but a call to reform the micro-economic theory which is the central core of economic analysis. It is no accident that my views have developed in course of trying to handle oligopoly in a systematic fashion. In all sophisticated writings today, one will find recognition that oligopoly is a prevalent industrial situation, and it therefore needs to be brought squarely within the main body of economic analysis. At the same time, as we all know, our marginalist equilibrium analysis cannot handle stable oligopoly situations in terms of the independent competition of individual businesses.
KeywordsFair Trade Demand Curve Price Competition Cost Curve Retail Trade
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- 1.Elizabeth Brunner, ‘A Note on Potential Competition’, Journal of Industrial Economics, July 1961.Google Scholar