Kautilya: a forerunner of neoclassical price theory
Abstract
Purpose
The purpose of this paper is to establish Kautilya as a genuine contender to be a forerunner of the neoclassical price theory.
Design/methodology/approach
Rational reconstruction approach is used to present Kautilya's understanding of several most basic concepts in economics.
Findings
Kautilya's understanding of the law of diminishing returns is at par with the classicists. His applications of concepts like opportunity cost, and of demand and supply framework, are closer to those of the neoclassicals. His understanding of the rules (axioms) of comparison and consistency and the exploration of substitution possibilities is way ahead of the classicists.
Research limitations/implications
The current research in the history of economic thought concentrates too heavily on the exploration of Western history of economic thought.
Practical implications
Kautilya's Arthashastra is a new source of knowledge and the profession should encourage the exploration of other ancient contributions outside of Europe.
Originality/value
The paper revises the history of economic thought.
Keywords
Citation
Sihag, B.S. (2009), "Kautilya: a forerunner of neoclassical price theory", Humanomics, Vol. 25 No. 1, pp. 37-54. https://doi.org/10.1108/08288660910934763
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited