E.H. Chamberlin and Contemporary Industrial Organisation Theory
Abstract
Edward Hastings Chamberlin, a great innovator in economic theory, has been badly served by his “followers”, who have “blanked” and “distorted” his message. Today it is the Chicago critics of monopolistic competition, not his self‐appointed followers at Harvard, who are developing an economics of industrial organisation that more nearly captures the spirit of Chamberlin′s work. Chamberlin′s central insight was that quality dimensions and other means of product differentiation are essential elements (in addition to nominal prices) in the analysis of how economic markets actually work. Although Chamberlin initially tried to fit his theory into the conventional mould of Marshallian economics, with predictably unsatisfactory results, this should not be allowed to obscure the novelty and robustness of his contribution.
Keywords
Citation
Ekelund, R.B. and Hébert, R.F. (1990), "E.H. Chamberlin and Contemporary Industrial Organisation Theory", Journal of Economic Studies, Vol. 17 No. 2. https://doi.org/10.1108/01443589010136951
Publisher
:MCB UP Ltd
Copyright © 1990, MCB UP Limited