W. M. Gorman
C. Blackorby, A. F. Shorrocks (eds)
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780198285212
- eISBN:
- 9780191596322
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198285213.001.0001
- Subject:
- Economics and Finance, Microeconomics
W. M. (Terence) Gorman has been a major figure in the development of economics during the past 40 years. His publications on separability, aggregation, duality, and the modelling of ...
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W. M. (Terence) Gorman has been a major figure in the development of economics during the past 40 years. His publications on separability, aggregation, duality, and the modelling of consumer demand are recognized as fundamental contributions to economic theory. Many of his unpublished papers have achieved similar status as privately circulated classics. This volume brings together, for the first time, all Gorman's important work on aggregation across commodities and agents, including separability, budgeting, representative agents, and the construction of capital and labour aggregates; much of this has never been published before. The 26 chapters are arranged in two parts: I. Separability and budgeting, and II. Aggregation across agents and firms. Each chapter (except the first) is preceded by an editorial introduction describing its origin and place within the literature, as well as the main results themselves. The book is of interest to academic economists interested in the foundations of consumer and producer theory, and in the interface between microeconomics and macroeconomics. A second volume of works, Modelling and Methodology, covers topics on duality, demand, trade, and welfare.
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W. M. (Terence) Gorman has been a major figure in the development of economics during the past 40 years. His publications on separability, aggregation, duality, and the modelling of consumer demand are recognized as fundamental contributions to economic theory. Many of his unpublished papers have achieved similar status as privately circulated classics. This volume brings together, for the first time, all Gorman's important work on aggregation across commodities and agents, including separability, budgeting, representative agents, and the construction of capital and labour aggregates; much of this has never been published before. The 26 chapters are arranged in two parts: I. Separability and budgeting, and II. Aggregation across agents and firms. Each chapter (except the first) is preceded by an editorial introduction describing its origin and place within the literature, as well as the main results themselves. The book is of interest to academic economists interested in the foundations of consumer and producer theory, and in the interface between microeconomics and macroeconomics. A second volume of works, Modelling and Methodology, covers topics on duality, demand, trade, and welfare.
Jean J. Gabszewicz
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780198233411
- eISBN:
- 9780191596292
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198233418.001.0001
- Subject:
- Economics and Finance, Microeconomics
Perfect competition provides a model of a frictionless economy in which economic agents behave independently of each other, abandoning to the market the task of coordinating their ...
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Perfect competition provides a model of a frictionless economy in which economic agents behave independently of each other, abandoning to the market the task of coordinating their individual decisions. This model is extensively studied in traditional price theory textbooks.
Imperfect competition is the paradigm that develops when, on the contrary, economic agents interact in a conscious manner, which is necessarily the case when competition takes place ‘among the few’. In this system, agents act strategically, taking into account the impact of their own decisions on competitors ‘behaviour and on the price mechanism. Such situations commonly arise when firms differentiate their products, erect strategic entry barriers, or exploit the imperfect information of their customers about the price or characteristics of their product.
This book explores the theoretical richness of these economic contexts, using some basic concepts of game theory. The four assumptions underlying the paradigm of perfect competition (no barriers to entry, large number of agents, product homogeneity, and perfect information) constitute the natural departure points of the theories of imperfect competition: whenever at least one of these assumptions is violated, imperfect competition is present. The framework of the book is organized around the four corresponding themes: the role of collusion and entry barriers in the degree of market competition (Ch. 3), product differentiation (Ch. 4) and the information of agents as an instrument of competition (Ch. 5). Finally, Ch. 6 illustrates the possibility of extending the theory to a general equilibrium framework.
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Perfect competition provides a model of a frictionless economy in which economic agents behave independently of each other, abandoning to the market the task of coordinating their individual decisions. This model is extensively studied in traditional price theory textbooks.
Imperfect competition is the paradigm that develops when, on the contrary, economic agents interact in a conscious manner, which is necessarily the case when competition takes place ‘among the few’. In this system, agents act strategically, taking into account the impact of their own decisions on competitors ‘behaviour and on the price mechanism. Such situations commonly arise when firms differentiate their products, erect strategic entry barriers, or exploit the imperfect information of their customers about the price or characteristics of their product.
This book explores the theoretical richness of these economic contexts, using some basic concepts of game theory. The four assumptions underlying the paradigm of perfect competition (no barriers to entry, large number of agents, product homogeneity, and perfect information) constitute the natural departure points of the theories of imperfect competition: whenever at least one of these assumptions is violated, imperfect competition is present. The framework of the book is organized around the four corresponding themes: the role of collusion and entry barriers in the degree of market competition (Ch. 3), product differentiation (Ch. 4) and the information of agents as an instrument of competition (Ch. 5). Finally, Ch. 6 illustrates the possibility of extending the theory to a general equilibrium framework.
Giovanni Dosi, David J. Teece, Josef Chytry (eds)
- Published in print:
- 1998
- Published Online:
- November 2003
- ISBN:
- 9780198290964
- eISBN:
- 9780191596162
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198290969.001.0001
- Subject:
- Economics and Finance, Microeconomics
The profitability and growth of business firms is increasingly dependent upon the development and astute deployment of intangible (knowledge) assets. Wealth creation in an open world ...
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The profitability and growth of business firms is increasingly dependent upon the development and astute deployment of intangible (knowledge) assets. Wealth creation in an open world economy depends critically on technological innovation, and this in turn involves developing, owning, and astutely orchestrating knowledge assets and intellectual property. This is what is meant by dynamic capabilities. The value‐enhancing skills required in management are gravitating away from the administrative towards the entrepreneurial. The determinants of a firm's innovative capacity are rooted in organizational design, incentives, human resources, internal culture, and external linkages. Profiting from innovation is always a challenge, requiring the right business model, integration strategy, and organizational form. Licensing is one of many ways to capture value from innovation, but is generally not the most profitable, except when intellectual property rights are secure. Imitators are prolific and the survival and prosperity of the innovator requires the astute orchestration of intellectual property rights, and complementary assets. Managers designing market entry strategies must also be mindful of the evolution of standards. This book develops the principles involved in firm management and illustrates the interplay of these ideas.
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The profitability and growth of business firms is increasingly dependent upon the development and astute deployment of intangible (knowledge) assets. Wealth creation in an open world economy depends critically on technological innovation, and this in turn involves developing, owning, and astutely orchestrating knowledge assets and intellectual property. This is what is meant by dynamic capabilities. The value‐enhancing skills required in management are gravitating away from the administrative towards the entrepreneurial. The determinants of a firm's innovative capacity are rooted in organizational design, incentives, human resources, internal culture, and external linkages. Profiting from innovation is always a challenge, requiring the right business model, integration strategy, and organizational form. Licensing is one of many ways to capture value from innovation, but is generally not the most profitable, except when intellectual property rights are secure. Imitators are prolific and the survival and prosperity of the innovator requires the astute orchestration of intellectual property rights, and complementary assets. Managers designing market entry strategies must also be mindful of the evolution of standards. This book develops the principles involved in firm management and illustrates the interplay of these ideas.
Edith Penrose
- Published in print:
- 1995
- Published Online:
- November 2003
- ISBN:
- 9780198289777
- eISBN:
- 9780191596759
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198289774.001.0001
- Subject:
- Economics and Finance, Microeconomics
This book discusses the development of a theory on the growth of the firm. It is shown that the resources with which a particular firm is accustomed to working will shape the productive ...
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This book discusses the development of a theory on the growth of the firm. It is shown that the resources with which a particular firm is accustomed to working will shape the productive services its management is capable of rendering. The experience of management will affect the productive services that all its other resources are capable of rendering. As management tries to make the best use of the resources available, a ‘dynamic’ interacting process occurs which encourages growth but limits the rate of growth.
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This book discusses the development of a theory on the growth of the firm. It is shown that the resources with which a particular firm is accustomed to working will shape the productive services its management is capable of rendering. The experience of management will affect the productive services that all its other resources are capable of rendering. As management tries to make the best use of the resources available, a ‘dynamic’ interacting process occurs which encourages growth but limits the rate of growth.
Martin Fransman
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198289357
- eISBN:
- 9780191596261
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198289359.001.0001
- Subject:
- Economics and Finance, Microeconomics
Innovation is the most important force driving economic change. But what drives innovation? In this book, it is argued that the beliefs that shape the way in which people, correctly or ...
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Innovation is the most important force driving economic change. But what drives innovation? In this book, it is argued that the beliefs that shape the way in which people, correctly or incorrectly, ‘see’ their world––i.e. their ‘visions’ of the world––are an important determinant of the innovation process. Visions are particularly important in those cases in which the decision‐making context is ‘fuzzy’––referred to here as situations of interpretive ambiguity––so that the decision‐taker is not certain what to infer. The book begins with an acclaimed critical survey of theories of the firm by some of the most important economists, organization theorists, and business strategists, paying particular attention to the ways in which concepts of information and knowledge are used. The evolution of leading Japanese computer and communications companies––such as NEC, Fujitsu, Toshiba, and Hitachi––is then examined by applying the author's approach to the evolution of firms and industry. The next set of chapters is devoted to an analysis of some of the key decisions relating to innovation made in several of the world's most important firms, such as IBM, AT&T, BT, NTT, and NEC. Finally, attention is turned to Japan, where government policies in biotechnology and other high‐tech fields are designed to strengthen Japanese firms and institutions within the context of a globalizing world economy.
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Innovation is the most important force driving economic change. But what drives innovation? In this book, it is argued that the beliefs that shape the way in which people, correctly or incorrectly, ‘see’ their world––i.e. their ‘visions’ of the world––are an important determinant of the innovation process. Visions are particularly important in those cases in which the decision‐making context is ‘fuzzy’––referred to here as situations of interpretive ambiguity––so that the decision‐taker is not certain what to infer. The book begins with an acclaimed critical survey of theories of the firm by some of the most important economists, organization theorists, and business strategists, paying particular attention to the ways in which concepts of information and knowledge are used. The evolution of leading Japanese computer and communications companies––such as NEC, Fujitsu, Toshiba, and Hitachi––is then examined by applying the author's approach to the evolution of firms and industry. The next set of chapters is devoted to an analysis of some of the key decisions relating to innovation made in several of the world's most important firms, such as IBM, AT&T, BT, NTT, and NEC. Finally, attention is turned to Japan, where government policies in biotechnology and other high‐tech fields are designed to strengthen Japanese firms and institutions within the context of a globalizing world economy.
Dimensions of Economic Theory and Policy
