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Joan Robinson, 1903–83 and Edward Chamberlin, 1899–1967: Theory of the Firm

In: A Concise History of Economic Thought

Author

Listed:
  • Gianni Vaggi

    (University of Pavia)

  • Peter Groenewegen

    (University of Sydney)

Abstract

The dilemma posed for competition and increasing returns could in principle be solved by Sraffa’s suggestion that a theory of price determination was more appropriately situated in a world of monopolies than in one of pure competition (see Chapter 28, above). Sraffa’s suggestion was taken up by Joan Robinson in her Imperfect Competition. Alternatively, it was possible to merge aspects of monopoly and competition in the manner of Marshall, concentrating on selling and marketing costs so essential when a firm faces a downward sloping demand curve, and hence arrive at a world of monopolistic competition. This was the rather different approach taken by Chamberlin at Cambridge, Massachusetts.

Suggested Citation

  • Gianni Vaggi & Peter Groenewegen, 2003. "Joan Robinson, 1903–83 and Edward Chamberlin, 1899–1967: Theory of the Firm," Palgrave Macmillan Books, in: A Concise History of Economic Thought, chapter 29, pages 283-287, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50580-3_29
    DOI: 10.1057/9780230505803_29
    as

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