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The Dupuit–Marshall Theory of Competitive Equilibrium
Author(s) -
Ekelund Jr Robert,
Hébert Robert F.
Publication year - 1999
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/1468-0335.00166
Subject(s) - ceteris paribus , economics , stochastic game , supply and demand , mathematical economics , production (economics) , microeconomics , neoclassical economics
Working with the classical expressions of demand, supply and market adjustments, the French engineer Jules Dupuit developed a model of competitive market adjustments in different time dimensions that anticipated Marshall’s ‘period analysis’ on all important points. Dupuit’s attempt to handle the complexity of economic phenomena in a scientific fashion, by utilizing the ceteris paribus method, and the integration of this method with the ‘facts’ of production in a ‘typical’ industry, generated a huge payoff for subsequent generations of economists. The payoff was enhanced by Marshall’s refinements, and realized by Marshall’s teaching, which took root in so many able students and disciples.