E-Book Overview
While traditional price theory has successfully elucidated national income distribution in a perfectly competitive economy, little is known today about the overall working of a noncompetitive economy. This book moves to remedy the imbalance by sketching a general equilibrium theory of a noncompetitive economy.
Developing his theory in the world of the standard Leontief system, Hukukane Nikaido attempts to construct objective demand functions reflecting the interdependence of economic agents in the real world upon which the monopolist's control of prices or output ultimately depends.
Originally published in 1975.
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Hukukane Nikaido ~ MONOPOLISTIC COMPETITION AND· EFFECTIVE DEMAND - - "A very original model of the general process of pricing and allocation, and an interesting synthesis of Marxian and neoclassical ideas. The assumptions are set forth meticulously, and the derivations are both correct and as elegant and simple as possible."Kenneth J. Arrow, Harvard University Traditional price theory has successfully elucidated national income distribution in a perfectly competitive economy. In recent years, however, price theorists have turned to the study of market structures, with the result that there is little knowledge about the overall working of a noncompetitive economy. This book moves to remedy the imbalance by sketching a general equilibrium theory of a noncompetitive economy. Hukukane Nikaido makes the important advance of attempting to construct objective demand functions reflecting the interdependence of economic agents in the real world upon which the monopolist's control of prices or output ultimately depends. He develops his theory in the simple world of the standard Leontief system which enables him to take advantage both of the predictable behavior of the basic model and of the Marxian labor and surplus value concepts. Hukukane Nikaido is Professor of Economics at Hitotsubashi University in Tokyo. He is an editor of the Princeton Studies in Mathematical Economics and the author of Convex Structures and Economic Theory (Academic, 1968) and other books. Princeton Studies in Mathematical Economics, 6 MONOPOLISTIC COMPETITION AND EFFECTIVE DEMAND PRINCETON STUDIES IN MATHEMATICAL ECONOMICS Edited by David Gale, Harold W. Kuhn, and H. Nikaido 1. Spectral Analysis of Economic Time Series, by C. W. ]. Granger and M. Hatanaka 2. The Economics of Uncertainty, by Karl Henrik Borch 3. Production Theory and Indivisible Commodities, by Charles Frank, Jr. 4. Theory of Cost and Production Functions, by Ronald W. Shephard 5. Core and Equilibria of a Large Economy, by Werner Hildenbrand 6. Monopolistic Competition and Effective Demand, by Hukukane Nikaido MONOPOLISTIC COMPETITION AND EFFECTIVE DEMAND HUKUKANE NIKAIDO Princeton University Press Princeton, New Jersey 1975 Copyright© 1975 by Princeton University Press Published by Princeton University Press, Princeton and London All Rights Reserved Library of Congress Cataloging in Publication data will be found on the last printed page of this book This book has been composed in Journal Roman Printed in the United States of America by Princeton University Press, Princeton, New Jersey