Price Behaviour and Business Behaviour

Price Behaviour and Business Behaviour
Nitzan, Jonathan. (1990). Discussion Papers. Department of Economics. McGill University. pp. 1-33. (Article - Working Paper; English).

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Abstract or Brief Description

The present essay is the second in a series of three papers which examine alternative approaches to inflation. Here we identify some of the principal criticisms expressed against neoclassical views on price behaviour and business behaviour. These challenges grew from the early discovery of ‘administered prices’ by Means and the subsequent findings by Hall and Hitch regarding ‘full cost’ pricing. The notions that industrial prices were relatively inflexible and that businessmen set those prices by imprecise rules of thumb stood in sharp contrast to the pristine simplicity of neoclassical models. Yet these attempts for greater realism seemed to undermine the prospects of constructing a coherent theory for prices.



Publication Type

Article - Working Paper


administered prices business objectives competition corporate concentration corporation full cost marginalism market prices monopoly oligopoly price theory profit target rate of return


BN Agency
BN Business Enterprise
BN Capital & Accumulation
BN Labour
BN Macro
BN Micro
BN Methodology
BN Money & Finance
BN Cooperation & Collective Action
BN Value & Price
BN Power
BN Distribution
BN Production
BN Growth
BN Region - Europe
BN Region - North America
BN Industrial Organization
BN Institutions

Depositing User

Jonathan Nitzan

Date Deposited

29 Jan 2005

Last Modified

29 Mar 2016 19:57


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