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RESEARCH PRODUCT
Bilateral Monopoly: A Contribution by Francesco Ferrara
Gioacchino Faziosubject
General Arts and HumanitiesInterpretation (philosophy)Economics Econometrics and Finance (miscellaneous)Neoclassical economicsCournot competitionFrancesco Ferrara cost of reproduction bilateral monopoly theory of value marginal analysisCost of reproductionIndeterminacy (literature)Value theoryMarginal AnalysisHistory and Philosophy of ScienceBilateral monopolyEconomicsRelevance (law)description
In this paper, we propose an interpretation of the application of "cost of reproduction" of Francesco Ferrara to the exchange between two agents to highlight its relevance for the theory of bilateral monopoly. In the Teoria delle Mercedi (1863), Ferrara gives a numerical example to explain price determination in the exchange between one buyer and one seller. Here, this example is translated into a mathematical model that reproduces the fundamental issues of the neoclassical debate on the indeterminacy of price in the Cournot model (1938), and anticipates the solutions proposed by Edgeworth (1881) at the end of this debate.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2009-06-01 |