February 11, 2015

What does a market really look like?

Comment on  'Finding equilibrium'


Equilibrium is a nonentity. For theoretical economics follows that the familiar supply-demand-equilibrium depiction of the textbooks has to be replaced. This presupposes an entirely new approach because equilibrium is an indispensable element of the orthodox research program.

“Thus it is an organizing feature of any theory in the program that there must be a well-defined idea of equilibrium present; that equilibrium notion is to be intrinsic to any model or theory that exists in the protective belts.” (Weintraub, 1985, p. 148)

In order to replace Orthodoxy, the correct market theory has to be developed. This is the make-or-break challenge for Heterodoxy (2015).

Egmont Kakarot-Handtke

Kakarot-Handtke, E. (2015). Essentials of Constructive Heterodoxy: The Market. SSRN Working Paper Series, 2547098: 1–10. URL
Weintraub, E. R. (1985). Joan Robinson’s Critique of Equilibrium: An Appraisal. American Economic Review, Papers and Proceedings, 75(2): 146–149. URL

For the correct depiction of the product market see here.