6533b7dcfe1ef96bd1271fe2
RESEARCH PRODUCT
The Classical Notion of Competition Revisited
Rodolfo SignorinoNeri Salvadorisubject
Economics and EconometricsHistoryjel:B12Neoclassical economicsSpace (commercial competition)Classical and neoclassical notions of competition Adam Smith Karl Marx mixed strategies.Classical Economics Competition Adam Smith Karl Marx mixed strategiesjel:L11OligopolyCompetition (economics)StrategyTaxonomy (general)Bertrand competitionMarket priceEconomicsPerfect competitionSettore SECS-P/01 - Economia PoliticaClassical and Neoclassical notion of competition Smith Marx BertrandMathematical economicsdescription
This article seeks to fill a lacuna within classical economics concerning the process of market price determination in situations of market disequilibrium. To this aim, first we distinguish the classical notion of free competition from the Walrasian notion of perfect competition and we argue that the latter is beset with some theoretical difficulties alien to the former. Second, we reconstruct in some detail Smith’s and Marx’s views concerning market price determination and show that Marx’s extensive use of metaphors and numerical examples foreshadows the modern taxonomy of buyers’ market, sellers’ market, and mixed strategy equilibrium in the capacity space of a standard Bertrand duopoly model. Finally, we highlight similarities and differences between the classical notion of competition and contemporary Bertrand competition models.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2013-01-01 | History of Political Economy |