History of the collective market demand curve in the 20th Century : Form Arthur Cecil Pigou to Gary Becker
Part of : Αρχείον οικονομικής ιστορίας ; Vol.XIII, No.2, 2001, pages 75-88
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75-88
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The article tells the history of the aggregated demand curve in the 20th Century. The question we ask is: “How can we determine the aggregate demand curve if the preferences of one consumer are affected by what others consume?” Before the 20th Century, total demand was simply thought of as a case of simple adding the demand of the several sources of it (e.g., Verri, Davenant, Cournot, and Marshall). After Pigou raised the question in 1913, it was Leibenstein (1950) who came up with an answer in terms of the conventional analysis of demand. The problem and its solution, however, is still relevant. See, e.g., the failure to use Pigou and Leibenstein in the way Becker solves a problem when demand is related.
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