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The classical notion of competition revisited

Neri Salvadori () and Rodolfo Signorino ()

MPRA Paper from University Library of Munich, Germany

Abstract: The paper seeks to fill a lacuna within Classical economics concerning the process of market price determination in a short-period equilibrium. To this aim, first we distinguish the Classical notion of free competition from the Walrasian notion of perfect competition and we argue that the latter is beset by some theoretical difficulties alien to the former. Second, we reconstruct in some detail Smith and Marx’s views concerning market price determination and we show that Marx’s extensive use of metaphors and numerical examples foreshadows the modern taxonomy of buyers’ market, sellers’ market and mixed strategy equilibrium in the capacity space of a standard Bertrand duopoly model. Finally, we highlight similarities and differences between the Classical notion of competition and contemporary game-theoretic oligopoly models

Keywords: Classical and neoclassical notions of competition; Adam Smith; Karl Marx; mixed strategies. (search for similar items in EconPapers)
JEL-codes: B12 L11 (search for similar items in EconPapers)
Date: 2010-05-17, Revised 2010-05-17
New Economics Papers: this item is included in nep-com, nep-his and nep-hpe
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Journal Article: The Classical Notion of Competition Revisited (2013) Downloads
Working Paper: The classical notion of competition revisited (2010) Downloads
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