Occupy Economics Workshops
at Steelworkers Hall, 25 Cecil St.
Toronto, ON M5T 1N1, Canada
(click above to see map)
Workshops are free and open to all
Workshop coordinator: Dix
Tuesday Sep. 30th 2014, 6:30 - 8:30pm
The battle for a model of market competition.
During the 1940’s, the theory of monopolistic competition (TMC), proposed by Joan Robinson and Edward Chamberlin was gaining popularity. The main tenets of TMC is that product differentiation breaks up the unified markets of homogenous products, which is a precondition for the neoclassical ideal of perfect competition. Product differentation allows for formation market power and prices that are marked-up instead of being determined by costs. If this holds, the neoclassical model of markets loses validity.
Consequently, conservative economists with Milton Friedman in the lead launched a counter-attack in the early 1950s. The result was that the hegemony of the neoclassical model of the market survived, and it still is the main model presented to students in universities today.
We will dissect these conflicting models and find out which is right and which is wrong.