Journal Article

Consumption and time in economics: prices and quantities in a temporary equilibrium perspective

Sergio Nisticò

in Cambridge Journal of Economics

Published on behalf of Cambridge Political Economy Society

Volume 29, issue 6, pages 943-957
Published in print November 2005 | ISSN: 0309-166X
Published online November 2005 | e-ISSN: 1464-3545 | DOI: http://dx.doi.org/10.1093/cje/bei070
Consumption and time in economics: prices and quantities in a temporary equilibrium perspective

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The main tenet of the paper is that cost-plus non-competitive prices, while obviously set by firms according to expected market demand for their output, can be assumed to be independent of possible discrepancies between the expected and the actual demand for firms' output. The analysis is placed within Hicks's temporary equilibrium framework, though suggesting an explanation of demand totally different from Hicks's. It is argued that the rationale for the independence of prices from actual sales might be found in Gossen's notion of optimum frequency of consumption.

Keywords: Consumption; Time; Prices; Temporary equilibrium

Journal Article.  7405 words.  Illustrated.

Subjects: Economics ; Political Economy ; Economic Sociology

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