IDEAS home Printed from https://ideas.repec.org/a/wea/econth/v6y2017i2p1.html
   My bibliography  Save this article

Cournot's Trade Theory and its Neoclassical Appropriation: Lessons to be Learnt about the Use and Abuse of Models

Author

Listed:
  • Eithne Murphy

    (Department of Economics, National University of Ireland, Galway, Ireland)

Abstract

This paper seeks to rehabilitate the trade theory of Augustin Cournot. In contrast to the widespread awareness among neoclassical economists of Cournot's contribution to microeconomics, there is general ignorance of his trade theory, which an earlier generation of neoclassical theorists attributed to its erroneous conclusions. I dispute this view and attempt to show the internal consistency of Cournot's trade analysis. While the assumptions underpinning his trade theory could be considered extreme, they need to be understood in the light of his methodological commitments, which included a rejection of utility in the theory of wealth, and a dismissal of Say's law regarding general employment. Furthermore, I argue that the assumptions underpinning neoclassical trade theory are no less extreme, even as their theoretical conclusions are (similarly) logically consistent. All of this serves to highlight the insufficiency of theoretical rigour in establishing the relevance of a theory; the importance of history of thought in reminding us that more than one theoretical perspective exists; and, of course, the indispensability of empirical engagement in trying to arbitrate between contrasting theoretical positions.

Suggested Citation

  • Eithne Murphy, 2017. "Cournot's Trade Theory and its Neoclassical Appropriation: Lessons to be Learnt about the Use and Abuse of Models," Economic Thought, World Economics Association, vol. 6(2), pages 1-13, September.
  • Handle: RePEc:wea:econth:v:6:y:2017:i:2:p:1
    as

    Download full text from publisher

    File URL: http://et.worldeconomicsassociation.org/papers/cournots-trade-theory-and-its-neoclassical-appropriation-lessons-to-be-learnt-about-the-use-and-abuse-of-models/
    Download Restriction: no

    File URL: http://et.worldeconomicsassociation.org/files/2017/10/WEA-ET-6-2-Murphy.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Reghinos D. Theocharis, 1983. "Early Developments in Mathematical Economics," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-04949-3, December.
    2. Leonard Gomes, 2003. "The Economics and Ideology of Free Trade," Books, Edward Elgar Publishing, number 2857.
    3. Patrick A. Messerlin, 2001. "Measuring the Costs of Protection in Europe: European Commercial Policy in the 2000s," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 102, January.
    4. Patrick Messerlin, 2001. "Measuring the costs of protection in Europe : European commercial policy in the 2000s," Post-Print hal-03394451, HAL.
    5. Gary Clyde Hufbauer & Kimberly Ann Elliott, 1994. "Measuring the Costs of Protection in the United States," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 77, January.
    6. Gianni Vaggi & Peter Groenewegen, 2003. "A Concise History of Economic Thought," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-50580-3, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandra Ferreira-Lopes & Ccndida Sousa & Helena Carvalho & Nuno Crespo, 2017. "Trade Protectionism and Intra-industry Trade: A USA - EU Comparison," Research in World Economy, Research in World Economy, Sciedu Press, vol. 8(2), pages 88-102, December.
    2. Kyoji Fukao & Goushi Kataoka & Arata Kuno, 2003. "How to Measure Non-tariff Barriers? A Critical Examination of the Price-Differential Approach," Hi-Stat Discussion Paper Series d03-08, Institute of Economic Research, Hitotsubashi University.
    3. Bernard POIRINE & Jean-François GAY, 2015. "Le Coût Du Protectionnisme Dans Une Petite Économie Insulaire : Le Cas Extrême De La Polynésie Française," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 42, pages 133-156.
    4. Francois, Joseph & Nelson, Douglas & Pelkmans-Balaoing, Annette, 2008. "Endogenous Protection in General Equilibrium: Estimating Political Weights in the EU," CEPR Discussion Papers 6979, C.E.P.R. Discussion Papers.
    5. repec:spo:wpecon:info:hdl:2441/5l6uh8ogmqildh09h2q8j620g is not listed on IDEAS
    6. Balistreri, Edward J. & Mavroidis, Petros C. & Prusa, Thomas J., 2021. "What If? Tinkering with the Counterfactual: A Comment on US–Washing Machines (Article 22.6-US)," World Trade Review, Cambridge University Press, vol. 20(4), pages 421-435, October.
    7. Fritz Breuss, 2004. "WTO Dispute Settlement: An Economic Analysis of Four EU–US Mini Trade Wars—A Survey," Journal of Industry, Competition and Trade, Springer, vol. 4(4), pages 275-315, December.
    8. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    9. Ghoneim, Ahmed Farouk, 2004. "Competition, cultural variety and global governance: The case of the Egyptian audiovisual system," HWWA Reports 246, Hamburg Institute of International Economics (HWWA).
    10. Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2005. "Trade in the Triad: how easy is the access to large markets?," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1401-1430, November.
    11. Ghoneim, Ahmed Farouk, 2004. "Competition, Cultural Variety and Global Governance: The Case of the Egyptian Audiovisual System," Report Series 26109, Hamburg Institute of International Economics.
    12. Jean‐Christophe Maur, 2005. "Exporting Europe's Trade Policy," The World Economy, Wiley Blackwell, vol. 28(11), pages 1565-1590, November.
    13. Lee, Hiro & van der Mensbrugghe, Dominique, 2006. "Deep integration and its impacts on non-members: EU enlargement and East Asia," MPRA Paper 82286, University Library of Munich, Germany.
    14. repec:spo:wpmain:info:hdl:2441/5l6uh8ogmqildh09h2q90i5i1 is not listed on IDEAS
    15. repec:hal:wpspec:info:hdl:2441/5l6uh8ogmqildh09h2q8j620g is not listed on IDEAS
    16. Swinbank, Alan, 2004. "Dirty Tariffication Revisited: The EU and Sugar," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 5(1), pages 1-14.
    17. repec:spo:wpmain:info:hdl:2441/8324 is not listed on IDEAS
    18. repec:bla:jcmkts:v:45:y:2007:i::p:789-811 is not listed on IDEAS
    19. Bouët, Antoine, 2006. "What can the poor expect from trade liberalization?: opening the "black box" of trade modeling," MTID discussion papers 93, International Food Policy Research Institute (IFPRI).
    20. Patrick Messerlin, 2010. "New challenging issues for world trade and the world economy Strategies for the EC-Turkey Custom Union," Working Papers hal-00972937, HAL.
    21. Jean‐Christophe Bureau & Luca Salvatici, 2005. "Agricultural trade restrictiveness in the European Union and the United States," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 479-490, November.
    22. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h2q90i5i1 is not listed on IDEAS
    23. Patrick Messerlin, 2003. "Agriculture in the Doha Agenda," SciencePo Working papers Main hal-00972813, HAL.
    24. Francois, Joseph & Nelson, Douglas R., 2014. "Political support for trade policy in the European Union," European Journal of Political Economy, Elsevier, vol. 36(C), pages 243-253.
    25. Patrick Messerlin, 2010. "The European Community commercial policy," Working Papers hal-00972936, HAL.
    26. repec:bla:jcmkts:v:45:y:2007:i::p:771-787 is not listed on IDEAS
    27. Maryla Maliszewska, 2004. "EU Enlargement: Benefits of the Single Market Expansion for Current and New Member States," CASE Network Studies and Analyses 0273, CASE-Center for Social and Economic Research.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wea:econth:v:6:y:2017:i:2:p:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jake McMurchie (email available below). General contact details of provider: https://edirc.repec.org/data/worecea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.