The Sociological Foundations of Consumer Behavior: Their Implications for Economic Efficiency

Betty J. Collier

American Journal of Economics and Sociology, 1978, vol. 37, issue 1, 25-33

Abstract: Abstract. Neoclassical economic theory asserts that when the assumptions of perfect competition apply to a market economy, the allocation of inputs and/or outputs is such that by additional inputs or outputs no individual's welfare can be improved without diminishing some other individual's. That is, it is considered Pareto Efficient. When imperfect markets exist, however, externalities—influences from outside the economic process—in production and exchange, and indivisibilities—benefits or costs which cannot be allocated to or assessed against the individuals who enjoy or occasion them—appear and the market ceases to be an efficiently operated one. It is argued here that a fourth category of factors exists which may interfere with economic efficiency and that these factors are sociological in nature, factors arising from such considerations as class, status, role and power.

Date: 1978
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/j.1536-7150.1978.tb02789.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ajecsc:v:37:y:1978:i:1:p:25-33

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0002-9246

Access Statistics for this article

American Journal of Economics and Sociology is currently edited by Laurence S. Moss

More articles in American Journal of Economics and Sociology from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().