Abstract
The first economic heretics tended, like Sir James Steuart and E. S. Cayley, to be defenders of the established order against what they considered to be ill-advised and potentially dangerous innovations. Later dissidents were, on the whole, radicals who proposed far-reaching reform of the economic and (in some cases) the social system. The subject of this chapter is of the former type. P. W. S. Andrews was a convinced conservative whose microeconomic theory, although often seen as revolutionary by its critics, had quite opposite political implications and was reactionary (or counter-revolutionary) in an intellectual sense.
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Notes
P. W. S. Andrews, Manufacturing Business (London: Macmillan, 1963; first published 1949), pp. xvi–xvii, 28–9.
J. H. Clapham, ‘Of Empty Economic Boxes’ and ‘The Economic Boxes: a Rejoinder’, Economic Journal 32, 1922, pp. 305–14 and 560–3;
P. Sraffa, ‘The Laws of Returns Under Competitive Conditions’, ibid., 36, 1926, pp. 535–50.
E. H. Chamberlin, The Theory of Monopolistic Competition (Cambridge, Mass.: Harvard University Press, 1962; first published 1933), pp. 113–16, 175–6 and ch. VIII.
E. H. Chamberlin, Towards a More General Theory of Value (New York: Oxford University Press, 1957).
A. C. Pigou, ‘An Analysis of Supply’, Economic Journal 38, 1928, pp. 238–57; P. W. S. Andrews, conversation with author, c. 1969.
J. Robinson, The Economics of Imperfect Competition (London: Macmillan, 1933), and
‘A Comment’, Economic Journal 62, 1952, p. 325.
Ibid.: ‘I confined the analysis to cases where oligopoly can be neglected because I did not feel clever enough to deal with it.’
Chamberlin, Monopolistic Competition, ch. III, contains a good survey of pre-1933 oligopoly theory, such as it was.
P. M. Sweezy, ‘Demand Under Conditions of Oligopoly’, Journal of Political Economy 47, 1939, pp. 568–73.
F. S. Lee, ‘The Oxford Challenge to Marshallian Supply and Demand: the History of the Oxford Economists’ Research Group’, Oxford Economic Papers n.s. 33, 1981, pp. 339–51;
R. F. Harrod, Economic Essays (London: Macmillan, 1952), pp. ix–xi.
P. W. S. Andrews, On Competition in Economic Theory (London: Macmillan, 1964), pp. 33–4;
R. L. Hall and C. J. Hitch, ‘Price Theory and Business Behaviour’, Oxford Economic Papers 2, 1939, pp. 12–45.
F. Machlup, ‘Marginal Analysis and Empirical Research’, American Economic Review 36, 1946, pp. 519–54.
P. W. S. Andrews, ‘A Reconsideration of the Theory of the Individual Business’, Oxford Economic Papers n.s. 1, 1949, pp. 54–89.
Ibid., pp. 56–66.
Ibid., pp. 60–4.
Ibid., p. 75.
Ibid., pp. 81 (see especially p. 81, n. 5), 87.
Ibid., pp. 82–3 (original stress), 84–8.
T. Wilson, ‘Philip Andrews: Editor and Colleague’, Journal of Industrial Economics 20, 1971, p. 4.
For an excellent summary of the book see M. Farrell, ‘Philip Andrews and Manufacturing Business’, ibid., pp. 10–12.
J. M. Clark, ‘Towards a Theory of Workable Competition’, American Economic Review 30, 1940, pp. 241–56.
Manufacturing Business, p. xvi; J. Robinson, ‘Imperfect Competition Revisited’, Economic Journal 63, 1953, p. 590, n. 2;
W. R. MacLaurin, review of Manufacturing Business, American Economic Review 40, 1950, pp. 968–70;
E. A. G. Robinson, ‘The Pricing of Manufactured Products’, Economic Journal 60, 1950, p. 780.
MacLaurin, op. cit.;
A. Plant, review of Manufacturing Business, Economica n.s. 18, 1951, pp. 96–100; Andrews to Plant, 27 February 1951.
Andrews to R. F. Kahn, 2 April 1952; Andrews to A. Silberston, 23 March 1953; Andrews, ‘Some Aspects of Competition in Retail Trade’, Oxford Economic Papers n.s. 2, 1950, pp. 137–75;
‘A Reply’, ibid., n.s. 3, 1951, pp. 249–58; ‘Industrial Analysis in Economics With Especial Reference to Marshallian Doctrine’, pp. 139–72 of
T. Wilson and P. W. S. Andrews (eds), Oxford Studies in the Price Mechanism (Oxford: Clarendon Press, 1951).
M. J. Farrell, ‘The Case Against the Imperfect Competition Theories’, Economic Journal 61, 1951, pp. 423–6.
See also H. R. Edwards, ‘Mr. Wiles and the Normal Cost Theory of Price’, ibid., 62, 1952, pp. 666–74.
E. A. G. Robinson, ‘The Price of Manufactured Products and the Case Against Imperfect Competition: a Rejoinder’, Economic Journal 61, 1951, pp. 429–33.
Ibid., pp. 430–1.
M. J. Farrell, ‘Deductive Systems and Empirical Generalisations in the Theory of the Firm’, Oxford Economic Papers n.s. 4, 1952, pp. 45–9. On ‘implicit theorising’
see W. W. Leontief, ‘Implicit Theorizing: a Methodological Criticism of the Neo-Cambridge School’, Quarterly Journal of Economics 51, 1937, pp.337–51. Joan Robinson later admitted that her treatment of oligopolists’ demand curves had been a ‘shameless fudge’
(J. Robinson, The Economics of Imperfect Competition, London: Macmillan, second edn, 1969; first published 1933, p. vii).
P. Wiles, ‘Empirical Research and the Marginal Analysis’, Economic Journal 60, 1950, pp. 515–30;
H. R. Edwards, ‘Mr. Wiles and the Normal Cost Theory of Price’, Economic Journal 62, 1952, pp. 666–74.
E. H. Chamberlin, ‘“Full Cost” and Monopolistic Competition’, Economic Journal 62, 1952, pp. 318–25;
J. Robinson, ‘Imperfect Competition Revisited’, op. cit.
E. Brunner, ‘Competition and the Theory of the Firm’, Economia Internazionale 5, 1952, pp. 509–23 and 727–45;
J. Irving-Lessmann and F. S. Lee, ‘The Fate of an Errant Hypothesis: Andrews’s Theory of Competitive Oligopoly’, mimeo., Dielheim and Chicago, 1985, pp. 37–8.
Wiles, op. cit.;
R. F. Harrod, ‘The Theory of Imperfect Competition Revisited’, in his Economic Essays (London: Macmillan, 1952), p. 144;
T. Wilson, ‘The Inadequacy of the Theory of the Firm as a Branch of Welfare Economics’, Oxford Economic Papers n.s. 4, 1952, pp. 18–44,
reprinted in Wilson, Inflation, Employment and the Market (Oxford: Oxford University Press, 1984);
D. H. Robertson, Economic Commentaries (London: Staples Press, 1956), pp. 35–41;
H. Townsend, personal communication, 11 May 1986.
Andrews to Silberston, 23 March 1953; Andrews to J. White, 10 February 1949; Andrews to R. F. Kahn, 24 May 1952; Andrews to H. Clay, 18 January 1951; F. S. Lee, J. Irving-Lessmann, P. Earl and J. E. Davies, ‘P. W. S. Andrews’s Theory of Competitive Oligopoly: a New Interpretation’, mimeo., 1986, p. 6.
Andrews to A. Silberston, 23 March 1953; Andrews to R. Heflebower, 30 June 1952; cf. E. Brunner, ‘Competitive Prices, Normal Costs and Industrial Stability’, pp. 18–34 of P. W. S. Andrews and E. Brunner, Studies in Pricing (London: Macmillan, 1975).
P. W. S. Andrews and E. Brunner, Capital Development in Steel (Oxford: Blackwell, 1951);
Andrews and Brunner, The Life of Lord Nuffield (Oxford: Blackwell, 1959), which is described in the preface as ‘an act of piety’ (p.v.).
P. W. S. Andrews and F. Friday, Fair Trade: Resale Price Maintenance Re-examined (London: Macmillan, 1960); Andrews, ‘The Water Tube Boilermakers’ Association Agreement and Trial’, pp. 52–119 of
Andrews and Brunner, Studies in Pricing, op. cit.
See, for example, P. W. S. Andrews, Competition in the Modern Economy (London: Institute of Petroleum, 1958); personal communication from Fred S. Lee, 14 August 1986.
J. B. Heath, review of On Competition, Kyklos 18, 1965, p. 710.
See also the reviews by E. J. Grether, American Economic Review 56, 1966, pp. 1263–4;
A. Silberston, Economic Journal 77, 1967, pp. 863–7;
T. A. B. Corley, Economica n.s. 32, 1965, pp. 470–2; and
D. Robinson, Journal of Management Studies 2, 1965, pp. 236–40.
Corley, op. cit., p. 472.
J. S. Bain, Barriers to New Competition (Cambridge, Mass.: Harvard University Press, 1956);
P. Sylos-Labini, Oligopoly and Technical Progress (Cambridge, Mass.: Harvard University Press, second edn, 1969; first published in English in 1962);
F. Modigliani, ‘New Developments on the Oligopoly Front’, Journal of Political Economy 66, 1958, pp. 215–32; cf. On Competition, pp. 59–60.
For an opposing view, stressing the importance of planned excess capacity as a deterrent to entry, see K. Cowling, Monopoly Capitalism (London: Macmillan, 1982), ch. 2.
Sylos-Labini, op. cit., p. viii.
M. J. Farrell, ‘Discussion’ of M. Shubik, ‘Game Theory as an Approach to the Theory of the Firm’, American Economic Review 50, 1960, Papers and Proceedings, pp. 560–4; cf.
B. J. Loasby, ‘Hypothesis and Paradigm in the Theory of the Firm’, Economic Journal 81, 1971, pp. 863–85.
P. W. S. Andrews and E. Brunner, ‘Business Profits and the Quiet Life’, Journal of Industrial Economics 11, 1962, pp. 72–8.
Andrews, ‘Industrial Analysis in Economics’, op. cit., p. 172;
Brunner, ‘Competition and the Theory of the Firm’ op. cit., p. 34.
The theoretical similarities between Andrews and Shackle are noted by J. Irving, ‘P. W. S. Andrews and the Unsuccessful Revolution’, unpublished Ph.D thesis, University of Wollongong, 1978, pp. 70, 77.
A. S. Eichner, review of Studies in Pricing, Journal of Economic Literature 16, 1978, pp. 1436–8;
J. M. Keynes, ‘Relative Movements of Real Wages and Output’, Economic Journal 49, 1939, pp. 34–51.
For a history and brief survey of post-Keynesian economics see A. S. Eichner, A Guide to Post-Keynesian Economics (New York: M. E. Sharpe, 1979); and
A. S. Eichner and J. Kregel, ‘An Essay on Post-Keynesian Theory: a New Paradigm in Economics’, Journal of Economic Literature 13, 1975, pp. 1293–1314.
F. S. Lee, ‘“Kalecki’s Pricing Theory”: Two Comments’, Journal of Post-Keynesian Economics 8, 1985, pp. 145–8;
Lee, Irving-Lessmann, Earl and Davies, op. cit., p. 2; personal communication from Tom Wilson, 8 June 1986.
On excess capacity as a barrier to entry see Cowling, op. cit., ch. 2.
Competition in the Modern Economy, op. cit. pp. 42, 46; Robertson, op. cit., pp. 39, 41.
Irving, op. cit.;
Loasby, op. cit.;
S. J. Latsis, ‘Situational Determinism in Economics’, British Journal for the Philosophy of Science 23, 1972, pp. 207–45 (unaccountably Latsis makes no mention of Andrews, though his arguments apply with equal force to Manufacturing Business); P. E. Earl, ‘A Behavioural Theory of Economists’ Behaviour’, pp. 90–125 of
A. Eichner (ed.), Why Economics Is Not Yet a Science (London: Macmillan, 1983).
A. Koutsoyiannis, Modern Microeconomics (London: Macmillan, 1975; second edn 1979).
Even in the specialist area of industrial economics, the leading international text makes only a handful of passing references to his work: F. M. Scherer, Industrial Market Structure and Economic Performance (Boston: Houghton Mifflin, second edn, 1980), pp. 229, 234–5, 244–5, 593.
Irving-Lessmann and Lee, ‘The Fate …’, op. cit., p. 17; personal communications from Harry Townsend, 11 May 1986 and Tom Wilson, 8 June 1986.
Loasby, op. cit., p. 879.
G. B. Richardson, Information and Investment (Oxford: Oxford University Press, 1960);
Lee, Irving-Lessmann, Earl and Davies, ‘P. W. S. Andrews’s Theory …’, op. cit., p. 24;
Earl, op. cit., p. 119; personal communications from Gregory Andrews, 17 May 1986; Juli Irving-Lessmann, 8 July 1986; and Fred Lee, 15 July 1986.
P. W. S. Andrews, ‘The Business Enterprise as a Subject for Research: a Comment’, Kyklos 10, 1957, p. 71.
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King, J.E. (1988). P. W. S. Andrews (1914–1971). In: Economic Exiles. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-07743-4_9
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