During the second half of the twentieth century economic theory moved increasingly away from price theory, which was gradually displaced by more modern trends such as game theory, decision theory, behavioral-empirical-experimental economics, heterodox economics, etc. This was due to serious...

This paper develops a discussion and provides the basis for a dispute of the principal assumption on which the classical-neoclassical theory of perfect competition is based: is it indeed true that the individual product demand of each producer is perfectly elastic (horizontal) and the price is...

We prove that a single-valued solution of perfectly competitive TU economies underlying nonatomic exact market games is uniquely determined as the Mertens [23] value by four plausible value-related axioms. Since the Mertens value is always a core element, this result provides an axiomatization...

We prove that a single-valued solution of nonatomic market games (or the perfectly competitive TU economies underling them) is uniquely determined as the Mertens value by four plausible value related axioms. Since the Mertens value is always in the core of an economy, this result provides an...

We investigate how price ceilings and floors affect outcomes in continuous time, double auction markets with discrete goods and multiple qualities. When price controls exist, the existence of competitive equilibria (the solution concept of classical market theory) is no longer guaranteed; hence, we...

I demonstrate a straightforward but apparently widely unrecognized implication of the standard requirements for perfect competition: an economy in which consumers can choose to learn is generally not perfectly competitive. In particular, if endogenous welfare relevant learning is feasible, the...

We study the influence of the financial market on the decisions of firms in the real market. To that end, we present a model in which the shareholders’ portfolio selection of assets and the decisions of the publicly-traded firms are integrated through the market process. Financial access...

In this paper, we propose a perfect competition test which checks whether arbitrarily small coalitions of firms, which behave strategically on costs, are able to manipulate prices in their own benefit. We apply this test to economies with a continuum of differentiated producers. We show that,...