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Role of Consumer Preferences in an Economic System *
Author(s) -
Zinam Oleg
Publication year - 1974
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1974.tb02209.x
Subject(s) - preference , consumption (sociology) , economics , government (linguistics) , ideal (ethics) , production (economics) , economic analysis , microeconomics , mathematical economics , positive economics , sociology , epistemology , classical economics , social science , linguistics , philosophy
A bstract . This article provides a theoretical model for systematic analysis of interaction of consumer preferences with preferences of producers and of government. The central question of the study is whose preferences are rendered effective and to what extent. A theoretical framework for analysis of diverse economic systems is used to derive preference and opportunity functions of decision‐making units on consumption, production, and government sides. This model is broadened by introduction of elements of a theory of change based on the postulates of necessary and sufficient conditions. Galbraith's model is placed analytically between the two extreme ideal types and subjected to a critical analysis.