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Nov 20, 2021 · General equilibrium theory lost its dominant position in theoretical economic studies, with its role of setting the research agenda taken over by what this article calls the “new microeconomic theories,” principally decision theory, game theory, and mechanism design.
Nov 20, 2021 · In the 1970s–1980s, the theoretical focus of postwar neoclassical economics shifted from general equilibrium theory to the new microeconomic theories, consisting mainly of decision theory, game theory, and mechanism design.
- The Change in the Theoretical Focus of Neoclassical Economics: Past Explanations
- Historians of Economic Thought: Mathematization à la Bourbaki
- What Can We Learn from the Rise of the New Microeconomic Theories?
- From Grand Theory to Small Models
- Insights for a New Political Economy?
- Declaration of Conflicting Interests
- Funding
- Author Biography
The fall of general equilibrium theory and the rise of decision theory, game theory, and mechanism design as the new theoretical workhorses in postwar neoclassical economics has drawn the interest of scholars in many different camps. Mainstream neoclassical economists, post-Keynesians, and historians of economic thought have all offered their own e...
Recent studies in the history of economic thought have provided a perspec-tive that has been overlooked by both mainstream neoclassical economists and post-Keynesians. This perspective does not explain the decline of gen-eral equilibrium theory and the rise of the new microeconomic theories through factors within the discipline, such as the consist...
All three of the explanations discussed above miss the fact that the fall of general equilibrium theory and the rise of the new microeconomic theories entailed a shift from “grand theory” to “small models.” The difficulties that general equilibrium theorists faced when trying to build a grandiose frame-work for economics through the core idea of ge...
The decline of general equilibrium theory and the rise of decision theory, game theory, and mechanism design involve more than an ordinary shift in hot spots of economic studies. General equilibrium theory and the new micro-economic theories represent research agendas that differ in nature: the former seeks to grasp the economy as a whole, while th...
Recently Philip Huang (2021) has proposed a path toward a new political economy that can grasp China’s evolving political-economic system. Huang’s object is to criticize marketism, which, without reflection, equates the various practices of trade with idealized, mutually beneficial exchanges, and to emphasize the combination and interaction between...
The author declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
The author received no financial support for the research, authorship, and/or publica-tion of this article. Notes Mainstream economics defines “mechanism design” narrowly. This article uses a broader definition, which refers not only to mechanism design in its narrower sense but also to the subfields of “contract theory” and “market design,” which ...
Yuan Gao 高原 is an associate professor in the School of Agricultural Economics and Rural Development of Renmin University of China. He is currently working on a project on comparing the methodologies of mainstream formalist economics and clas-sical political economy.
Jan 1, 2015 · Such conception has laid the basis of the classical general equilibrium model, describing the economy via the aggregation of the behaviours manifested by households and firms.
- Oana Simona Hudea
- 2015
Feb 2, 2022 · For neoclassical theory, the debate showed how centralized, in fact, the Walrasian model of general competitive equilibrium theory is – perhaps it is even better suited as a model for a socialist rather than for a capitalist economy.
- reinhard.neck@aau.at
This chapter provides an overview of neoclassical economics. The term is explained and contrasted with heterodox alternatives. The historical origins of neoclassical economics are presented, emphasizing some forerunners (Antoine Augustin Cournot, Heinrich Hermann Gossen) and discussing the three R. Neck (*)
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Even though mainstream economics is made up ot various strands 01 analy sis — such as microeconomics, general equilibrium, adaptations of game theory — they share implicitly or explicitly certain basic and characteristic elements. Most important among these are assumptions concerning the nature
