Price Takers' Plenty in a Model of Pure Capitalism.

Scitovsky, Tibor

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Collected items

Document type:: Collected items

Collection:: Josef Steindl Collection

Title:: Price Takers' Plenty in a Model of Pure Capitalism.

Author:: Scitovsky, Tibor

Scope:: Kopie eines Typoskripts, 27 Blätter, mit handschriftlicher Korrektur und Korrektur mit Korrekturfolie, Paginierung von 5.1-5.20 und von 3.21-3.26

Year of publication:: 1983

Source material date:: [November 1983]

Language:: English

Note:: Draft.

JEL Classification:: D41 [Market Structure, Pricing, and Design: Perfect Competition]

Shelfmark:: S/M.33.7

Rights of use:: In Copyright

Access:: Free access

DOI:: https://doi.org/10.48671/nls.js.AC14446418

5.17 individual worker as well. More will be said on that later. Let rae now try to fit the model into the standard, symmetrically competitive model. That focuses on prices, the way they respond, and in their turn lead to changes in quantities; whereas I dealt with the direct response of one quantity to changes in another quantity and with all the nonprice variables at the price maker's disposal for influencing the quantities he sells and hopes to huy. The latter is a straight!orward extension of the customary approach, justified not so much by its added realism as by its enabling one to deal with a whole’ new class of valuable consumers' goods and services; the fringe benefits of competition. As to quantity adjustment in direct response to changes in other quantities, that belongs into a different category, being a short-run adjustment that runs parallel to adjustment via price changes; and it becomes a prompt and useful substitute for adjustments via price changes when those are impeded by the stickiness of prices. Bear in mind how indirectly, through the intervention of how many markets, the equilibrating forces of a general equilibrium system are supposed to work: and compare that to the simple and direct motivation price- maker employers have to maintain or increase employment. fly examples were simplified by the assumption of fixe realistic enough; though more generally, and long-run adjustment via price changes d wages and that seemed short-run quantity adjustment may complement each other.

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