A review of monopolistic and imperfect competition theories

The past decade has witnessed the development of a technique of equilibrium value analysis which, although built upon the foundation of the neo-classical tradition, denies the validity of its emphasis on the competitive character of the price system. Monopolistic conditions are to be regarded as ubiquitous and determining, rather than exceptional and inconsequential, features of modern economic life. The re-orientation consists in according analytical recognition to the joint influence of monopolistic and competitive elements in the determination of normal equilibrium values. Although only the basic framework of the theory has been laid, the importance and permanence of its influence on economic thought are now beyond question.