This paper applies Hotelling's model to correct the Bertrand and Cournot duopoly theories. It improves Bertrand's result by showing that duopoly competition never drives price to zero, and enlarges Cournot's result by showing that two duopolists capture the whole market. Finally, this paper...

This paper disproves Diamond's search theory. Diamond transformed from an identity of employed workers and filled jobs to another of their surplus. This paper proves that such transformation is invalid, and that the resulting identity does not hold. This paper also proves that even the asset...

This paper proves that the Mortensen-Pissarides matching theory is nothing but a tautology. They started with an assumption and ended with the same as solution. Their assumption/solution is also at odds with the Beveridge, or the negative vacancy-unemployment relation

This paper reveals how economists have abused calculus. Marginalism is merely a condition in the optimization process; it cannot be taken as the end solution. Becker's attempt to combine two marginal conditions together is catastrophic, for his two teams of workers digging from two ends of a...

This paper shows that marginal measures can be easily exploited, and proves that they are only half-baked products. Marginal measures are condition for maximization, for deriving the ultimate demand and supply functions, which are then immune from being exploited. This paper suggests that many...

This paper shows that Stackelberg has turned the Cournot competitors into monopolists, to result in Bertrand's equilibrium, and to fall into a prisoner's dilemma. This paper then applies Hotelling's theory to break the dilemma

This paper proves that Becker and Stigler's attempt to explain addiction is unsuccessful. Income or wealth may affect consumption, but they cannot be used to represent addiction. Wage rate may shift the budget line, but equilibrium requires a given wage rate or income. Addiction is a...

This paper points out two fundamental mistakes committed by Arnott and Stiglitz: their formulation of expected utility is a single point, and their introduction of the effort parameter is detrimental. The first mistake destroys their hope to retrieve an indifference curve. The second mistake...

This paper changes the current view of tariff. It advocates taxing the exporters, rather than the importers. The new theory is based on the symmetry theorem developed earlier by Lerner. Taxing the exporters has all the same effects as taxing the importers with tariff, except that the former...

This paper proves that the endogenous attempt to derive unlimited growth leads to bankrupting business. Endogenous growth requires increasing returns to scale, but its mathematical solution does not exist. Using Euler's theorem, this paper confirms that such theory ruins both the production...