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Evolutionary Price Theory

Expected online publication date:  12 May 2025

Harry Bloch
Affiliation:
Curtin University

Summary

Economic evolution involves structural change from within, so evolutionary price theory needs to address how prices facilitate and accommodate this structural change and how structural change in turn impacts on prices. Such analysis is impossible using neoclassical price theory in which endowments of inputs, production technology and consumer preferences are all treated as exogenously determined and the future is known or at least its probability distribution is known. An alternative theory of price determination outlined in this book is compatible with structural change from within and an unknown future. The theory employs an open-system ontology and a micro-meso-macro methodology. Prices have a dual informational role in evolutionary economics. As well as coordinating ongoing production and consumption activities, prices provide information to guide potential entrepreneurs and their financiers in evaluating the profitability of innovations. The latter role can substantially disrupt the order created in the former role.
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Online ISBN: 9781009669184
Publisher: Cambridge University Press

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Evolutionary Price Theory
  • Harry Bloch, Curtin University
  • Online ISBN: 9781009669184
Available formats No formats are currently available for this content.
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Evolutionary Price Theory
  • Harry Bloch, Curtin University
  • Online ISBN: 9781009669184
Available formats No formats are currently available for this content.
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To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Evolutionary Price Theory
  • Harry Bloch, Curtin University
  • Online ISBN: 9781009669184
Available formats No formats are currently available for this content.
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