Books & Works
This book argues that the neoclassical theories of market self-correction were unrealistic and proposed government intervention to be necessary to stabilize the economy.
The General Theory
Hayek argued that there are two important types of knowledge. One is scientific knowledge. What is the other?
Knowledge of time and place
This economist came up with the concept of creative destruction.
Joseph Schumpeter
Although models of monopolistic competition were not developed until the 1920s, duoplistic models were developed in the late 1800s by one of these French economists
Cournot or Bertrand
Planted crops on adjacent plots of land with varying degrees of intensity to discover the concept of marginal productivity and the optimality of setting marginal revenue equal to marginal cost.
Johann Heinrich von Thunen
This article published in Economica in 1937, provided an explantion for why firms exist.
The Nature of the Firm
Keynes attributed the tendency of individuals in the economy to make decisions more on emotions and confidence in the economy rather than mathematical reasoning
Animal spirits
This economist demonstrated the ability of firms with market power to charge different prices to consumers depending on their willingness to pay as well as the concept of monopsony
Joan Robinson
This economist argued that in oligopolistic competition, it is optimal to compete on price rather than quantity.
Bertrand
Believed that the value of a good is determined by the utility it provides to the consumer, but ultimately this value will be equated with the value of labor required in its production.
William Stanley Jevons
John Maynard Keynes’s book lamented the financial burden that reparation payments placed on Germany after World Ward I
Although Marshall is attributed with developing partial equilibrium analysis, Walras is attributed with developing this concept referring to broader analysis across multiple markets.
General equilibrium
This economist pointed out the inconsistency between perfect competition and increasing returns to scale.
Saffra
According to Coase, firms exist to reduce these.
Transaction costs
Developed a theory of subjective value by separating goods into first-order goods and second-order goods and so forth.
Carl Menger
In this book, Schumpeter argues that the dynamic nature of capitalism and the features of democracy will eventually lead to socialism.
Socialism, Capitalism, and Democracy
Although Pareto's First and Second Welfare Theorems could result in efficient outcomes for a pure exchange economy, in what type of economy will this be unlikely to be the case?
Production economy
The economist who derived the optimal conditions of setting marginal rate of substitution equal to the marginal rate of transformation
Edgeworth
This economist argued that in oligopolistic competition, it is optimal to compete on quantity rather than price.
Cournot
According to Menger, in addition to being useful, an item must satisfy four criteria to be classified as a good. Provide two of the four.
1. Human need.
2. Must be causal relationship between the good and satisfying the need.
3. Human knowledge of this connection.
4. Sufficient command to direct good to satisfy needs.
According to this article published in the American Economic Review in 1945, it should not be a question whether or not planning should take place. Rather the question is whether planning should be centralized or decentralized.
Use of Knowledge in Society
"The opening of new markets, foreign or domestic, and the organizational development from the craft shop and factory to such concerns as U.S. Steel illustrate the same process of industrial mutation—if I may use the biological term—that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of ___________ is the essential fact about capitalism. It is what capitalism consists.”
Creative Destruction
Developed the Edgeworth Box to analyze issues related to welfare economics
Pareto
Cournot models would later be used by this economist to demonstrate how firms determine production decisions conditional on the expected behavior of competitors which are also conditional on their competitors' expectations on their behavior. The resulting equilibrium is named after this economist who is also the protaginist of and Academy Award Winning movie starring Russell Crowe and Jennifer Connelly.
John Nash
Building on Menger’s “loss principle” he formalized the concept of opportunity cost which is central to economic thinking today.
Friedrich von Wieser