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The Origin Of The Sylos Postulate: Modigliani’S And Sylos Labini’S Contributions To Oligopoly Theory

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  • Rancan, Antonella

Abstract

Paolo Sylos Labini’s Oligopoly Theory and Technical Progress (1957) is considered one of the major contributions to entry-prevention models, especially after Franco Modigliani’s formalization. Nonetheless, Modigliani neglected Sylos Labini’s aim when reviewing his work (1958), particularly his demonstration of the dynamic relation between industrial concentration and economic development. Modigliani addressed only Sylos Labini’s microeconomic analysis and the determination of the long-run equilibrium price and output, concentrating on the role played by firms’ anticipations. By doing so he shifted attention from Sylos Labini’s objective analysis to a subjective approach to the oligopoly problem. This paper discusses Sylos Labini’s and Modigliani’s differing approaches, derives the origin of the Sylos postulate, and sets Modigliani’s interpretation of Sylos Labini’s oligopoly theory in the context of his 1950s research into firms’ behavior under uncertainty.

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  • Rancan, Antonella, 2015. "The Origin Of The Sylos Postulate: Modigliani’S And Sylos Labini’S Contributions To Oligopoly Theory," Journal of the History of Economic Thought, Cambridge University Press, vol. 37(3), pages 431-448, September.
    • Handle: RePEc:cup:jhisec:v:37:y:2015:i:03:p:431-448_00
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    References listed on IDEAS

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    Cited by:

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    2. Antonella Rancan, 2014. "Commento di Modigliani alla teoria della disoccupazione di Sylos Labini (attraverso la corrispondenza del 1956)," Moneta e Credito, Economia civile, vol. 67(267), pages 271-284.
    3. Antonella Rancan, 2014. "Modigliani's comments on Sylos Labini's theory of unemployment (1956-1958)," PSL Quarterly Review, Economia civile, vol. 67(270), pages 269-282.
    4. Alessandro Roncaglia, 2014. "The theory of employment: two approaches compared," PSL Quarterly Review, Economia civile, vol. 67(270), pages 241-268.

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    JEL classification:

    • B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Wicksellian)
    • 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

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