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Pricing Theory - Book Report/Review Example
Oskar Lange's "The Place of Interest in the Theory of Production", is on the topic on the place of interest in the general production theory. Before embarking on examining what Mr. Lange has tried to show in his paper, it would be nice to say a few words about Mr…
He made his vast contribution to the field of economics during the period of 1933 to 1945, which was the period of his American interlude and although he was a very passionate socialist, he has strong belief in the Neo-classical price theory (http://cepa.newschool.edu). This paper will look at one of his famous and noteworthy accomplishments, the paper "The Place of Interest in the Theory of Production", which was published in the year 1936.
A clearer understanding of this paper necessitates some background of the general theory of production, particularly, the Neo-classical school of thought. It is so because, Lange's output have some basis from this theory. In fact there was both integration to and criticism of the Neo-classical theories of production.
The Neo-classical thought can be deemed a successor of the classical economic thoughts of Adam Smith and David Ricardo, the Utilitarianism by John Stuart Mill, and lastly the marginalism or the marginal theory of value. The Neo-classical era has evolved with the pioneering works of William Stanley Jevon, Carl Menger and Leon Walras (Wikimedia Foundation, Inc., 2009). ...