DIFFERENTIATION AND CONTINUITY IN THE MARKET ECONOMY

Abstract

The effective working of market economies is dependent, for reasons not fully recognised, on the existence, and on the relative stability, of differences in the capabilities of individual firms. General equilibrium theory abstracts from these circumstances and is therefore unable to explain how economic adjustment actually takes place; a proper appreciation of the role played by differentiation and continuity enables to do this and to assess the scope and limitations of the process.

Citation

Richardson, G.B. (2003), "DIFFERENTIATION AND CONTINUITY IN THE MARKET ECONOMY", Koppl, R., Birner, J. and Kurrild-Klitgaard, P. (Ed.) Austrian Economics and Entrepreneurial Studies (Advances in Austrian Economics, Vol. 6), Emerald Group Publishing Limited, Leeds, pp. 89-95. https://doi.org/10.1016/S1529-2134(03)06006-X