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Foundations of contemporary economics: Heinrich von Stackelberg on market structure

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Listed:
  • Henrik Egbert
  • Teodor Sedlarski
  • Aleksandar B. Todorov

Abstract

Heinrich von Stackelberg introduced several fundamental concepts to economic theory. His contributions to the analysis of market structure are the best-known ones. Since the 1930th his theory of the instability of markets is a cornerstone of theoretical economics. If firms make dependent and independent decisions in an oligopolistic market structure, the outcome is rarely a stable equilibrium. The concept of Stackelberg-leader and Stackelberg-follower is immanent in many real-world business situations. However, only after the emergence of game theory and linear programming the full potential of Stackelberg’s contributions has become apparent. In cost theory and the theory of monopoly, he provided some of the basic principles that became part of economic textbooks. First-semester students of economics and business administration are studying these theories even 80 years after Stackelberg introduced them. In this comment, we refer to his two major works on market structures and cost theory.

Suggested Citation

  • Henrik Egbert & Teodor Sedlarski & Aleksandar B. Todorov, 2021. "Foundations of contemporary economics: Heinrich von Stackelberg on market structure," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 107-124.
    • Handle: RePEc:bas:econth:y:2021:i:5:p:107-124
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    References listed on IDEAS

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    1. Heinrich Stackelberg, 1941. "Kapital und Zins in der stationären Verkehrswirtschaft," Journal of Economics, Springer, vol. 10(1), pages 25-61, February.
    2. Heinrich von Stackelberg, 2011. "Market Structure and Equilibrium," Springer Books, Springer, number 978-3-642-12586-7, December.
    3. Niehans, Jürg, 1992. "Heinrich von Stackelberg: Relinking German Economics to the Mainstream," Journal of the History of Economic Thought, Cambridge University Press, vol. 14(2), pages 189-208, October.
    4. Konow, James, 1994. "The Political Economy of Heinrich von Stackelberg," Economic Inquiry, Western Economic Association International, vol. 32(1), pages 146-165, January.
    5. Wassily Leontief, 1936. "Stackelberg on Monopolistic Competition," Journal of Political Economy, University of Chicago Press, vol. 44(4), pages 554-554.
    6. Peter R. Senn, 2012. "The Scientific Contributions of Heinrich von Stackelberg," The European Heritage in Economics and the Social Sciences, in: Jürgen Georg Backhaus (ed.), Handbook of the History of Economic Thought, chapter 0, pages 565-579, Springer.
    7. Peter R. Senn, 1996. "Heinrich von Stackelberg in the history of economic ideas," Journal of Economic Studies, Emerald Group Publishing, vol. 23(5/6), pages 15-39, October.
    8. Heinrich von Stackelberg, 1947. "Zins und Liquidität: Eine Auseinandersetzung mit Keynes," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 83(IV), pages 311-323.
    9. Federico Etro, 2013. "Stackelberg, Heinrich von: Market Structure and Equilibrium," Journal of Economics, Springer, vol. 109(1), pages 89-92, May.
    10. George J. Stigler, 1940. "Notes on the Theory of Duopoly," Journal of Political Economy, University of Chicago Press, vol. 48(4), pages 521-521.
    11. Heinrich von Stackelberg, 2014. "Foundations of a Pure Cost Theory," Springer Books, Springer, edition 127, number 978-3-642-34537-1, December.
    12. George B. Dantzig, 1955. "Linear Programming under Uncertainty," Management Science, INFORMS, vol. 1(3-4), pages 197-206, 04-07.
    13. Stefan Baumgartner, 2001. "Heinrich von Stackelberg on joint production," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 8(4), pages 509-525.
    14. Peter R. Senn, 1996. "A short sketch of Stackelberg’s career," Journal of Economic Studies, Emerald Group Publishing, vol. 23(5/6), pages 9-14, October.
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    More about this item

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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