Why does mainstream economy not explain the causes of contemporary negative socio-economic phenomena?

Misiński Wojciech ()
Additional contact information
Misiński Wojciech: Wroclaw University of Economics, Komandorska 118/120, Wroclaw, Poland

WSB Journal of Business and Finance, 2019, vol. 53, issue 1, 92-106

Abstract: This article is a continuation and extension of the lecture ‘Causes and effects of incompleteness and non-inclusion of ownership structures of contemporary capital companies’ delivered at the conference in Wrocław in 2017 and published in the Scientific Notebooks of the University of Economics (No. 493). The aim of the article is to answer the question: why the Neoclassical Theory of Markets (Main Current Economics) does not explain the causes of a number of contemporary socio-economic phenomena, in particular, huge price fluctuations, breakdowns of individual markets and as a consequence of economic crises on a global scale? This required a new, different from the neoclassical view of the series of processes and market phenomena occurring in contemporary economies as well as the verification of the Neoclassical Market Theory paradigm constituting the main core of the Mainstream Economics. These include, in particular: 1) theoretical (classical) and real ‘object (s)’ analysis of market transactions; 2) rejection of one-dimensional, neoclassical analysis of exchange processes (transactions), accepting two or even three-dimensional analysis of the exchange process (transaction); 3) analysis of exchange processes (transactions), the ‘subject’ of which are complete, incomplete or partial (and their bundles) property rights; 4) analysis of exchange processes (transactions) by complete and exclusive and incomplete and non-exclusive decision-makers; 5) analysis of exchange processes (transactions), whose ‘subject’ are partial (and their bundles) property rights in relation to virtual (non-material) ‘goods’. Taking into account that the above verification (acceptance of a different from the neoclassical paradigm of market theory) allows to break out of the circle of elegant and logical neoclassical analysis of theoretical, never and nowhere existing markets (exchange processes), and more importantly, the explanatory reasons for a series of negative, contemporary socio-economic phenomena.

Keywords: Neoclassical Theory of Markets; law of supply and demand; New Institutional Economy; Theory of Property Rights; completeness and exclusivity of property rights (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/wsbjbf-2019-0010 (text/html)

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:vrs:wsbjbf:v:53:y:2019:i:1:p:92-106:n:1010

DOI: 10.2478/wsbjbf-2019-0010

Access Statistics for this article

WSB Journal of Business and Finance is currently edited by Jagienka Rześny-Cieplińska

More articles in WSB Journal of Business and Finance from Sciendo
Bibliographic data for series maintained by Peter Golla ().