The second report applying our new economic framework (developed in our first series of reports) to specific market contexts, in this case, markets characterized by product differentiation (pdf, 8 pages). Details below, with a link to a downloadable pdf table of contents.
$1,999.00 USDOWNLOAD TABLE OF CONTENTS (PDF)
The second report in our new series examines the implications of our new economic framework in markets characterized by product differentiation or “monopolistic competition”. As we will see, our conclusions differ greatly from those of standard economics and highlight not only our framework but the effects of the mainstream errors. As we have noted before, mainstream economics tends to assume the prior existence of markets or take them as given. It ignores the fact that the structure of an emergent market is itself the product of the market process. Market structure is the product of the preferences and actions of individuals. The structure of an emergent market cannot therefore be inconsistent with individual preferences. In fact, it acts to serve them. Our analysis in this report expands on these and other points.
The New Economics of Order