Edward Chamberlin
Encyclopedia
Edward Hastings Chamberlin (May 18, 1899 – July 16, 1967) was an American
economist
. He was born in La Conner, Washington
.
Chamberlin studied first at the University of Iowa
(where he was influenced by Frank H. Knight), then pursued graduate-level studies at the University of Michigan
, eventually receiving his Ph.D.
from Harvard University
in 1927.
For most of his career Edward Chamberlin taught economics at Harvard (1937–1967). He made significant contributions to microeconomics, particularly on competition theory and consumer choice, and their connection to prices. Edward Chamberlin coined the term "product differentiation
" to describe how a supplier may be able to charge a greater amount for a product than perfect competition would allow.
His most significant contribution was the theory of monopolistic competition
. Chamberlin published his book The Theory of Monopolistic Competition in 1933, the same year that Joan Robinson
published her book on the same topic: The Economics of Imperfect Competition, so these two economists can be regarded as the parents of the modern study of imperfect competition.
Chamberlin's theory of monopolistic competition is used by sociologist Harrison White
in his "markets from networks" model of market structure and competition.
The works of Chamberlin, Robinson, and other contributors to the "Structure-Conduct-Performance" paradigm were heavily discounted by game theorists in the 1960s, but Nobel-Prize winner Paul Krugman
and others built the foundations of the "new theory of international trade" by combining such theories of industrial structure with production functions that assumed significant economies of scale
and scope.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
. He was born in La Conner, Washington
La Conner, Washington
La Conner is a town in Skagit County, Washington, United States with a population of 891 at the 2010 census. It is included in the Mount Vernon–Anacortes, Washington Metropolitan Statistical Area. In the month of April, the town annually hosts the majority of the Skagit Valley Tulip Festival...
.
Chamberlin studied first at the University of Iowa
University of Iowa
The University of Iowa is a public state-supported research university located in Iowa City, Iowa, United States. It is the oldest public university in the state. The university is organized into eleven colleges granting undergraduate, graduate, and professional degrees...
(where he was influenced by Frank H. Knight), then pursued graduate-level studies at the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
, eventually receiving his Ph.D.
Ph.D.
A Ph.D. is a Doctor of Philosophy, an academic degree.Ph.D. may also refer to:* Ph.D. , a 1980s British group*Piled Higher and Deeper, a web comic strip*PhD: Phantasy Degree, a Korean comic series* PhD Docbook renderer, an XML renderer...
from Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
in 1927.
For most of his career Edward Chamberlin taught economics at Harvard (1937–1967). He made significant contributions to microeconomics, particularly on competition theory and consumer choice, and their connection to prices. Edward Chamberlin coined the term "product differentiation
Product differentiation
In economics and marketing, product differentiation is the process of distinguishing a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own product offerings...
" to describe how a supplier may be able to charge a greater amount for a product than perfect competition would allow.
His most significant contribution was the theory of monopolistic competition
Monopolistic competition
Monopolistic competition is imperfect competition where many competing producers sell products that are differentiated from one another...
. Chamberlin published his book The Theory of Monopolistic Competition in 1933, the same year that Joan Robinson
Joan Robinson
Joan Violet Robinson FBA was a post-Keynesian economist who was well known for her knowledge of monetary economics and wide-ranging contributions to economic theory...
published her book on the same topic: The Economics of Imperfect Competition, so these two economists can be regarded as the parents of the modern study of imperfect competition.
Chamberlin's theory of monopolistic competition is used by sociologist Harrison White
Harrison White
Harrison Colyar White is the emeritus Giddings Professor of Sociology at Columbia University. White is an influential scholar in the domain of social networks. He is credited with the development of a number of mathematical models of social structure including vacancy chains and blockmodels...
in his "markets from networks" model of market structure and competition.
The works of Chamberlin, Robinson, and other contributors to the "Structure-Conduct-Performance" paradigm were heavily discounted by game theorists in the 1960s, but Nobel-Prize winner Paul Krugman
Paul Krugman
Paul Robin Krugman is an American economist, professor of Economics and International Affairs at the Woodrow Wilson School of Public and International Affairs at Princeton University, Centenary Professor at the London School of Economics, and an op-ed columnist for The New York Times...
and others built the foundations of the "new theory of international trade" by combining such theories of industrial structure with production functions that assumed significant economies of scale
Economies of scale
Economies of scale, in microeconomics, refers to the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit...
and scope.
Major works
- "Duopoly: Values where sellers are few", 1929, QJE
- The Theory of Monopolistic Competition:: A Re-orientation of the Theory of Value, Harvard University Press, 1933, 1965, 8th ed.
- "Proportionality, Divisibility and Economics of Scale", 1948, QJE
- "An Experimental Imperfect Market", 1948, JPE
- "Product Heterogeneity and Public Policy", 1950, AER
- Monopolistic Competition Revisited, 1951
- "Impact of Recent Monopoly Theory on the Schumpeterian System", 1951, REStat
- "Full Cost and Monopolistic Competition", 1952, EJ
- "The Product as an Economic Variable", 1953, QJE
- "Some Aspects of Nonprice Competition", 1954, in Huegy, editor, Role and Nature of Competition
- "Measuring the Degree of Monopoly and Competition", 1954, in Chamberlin, editor, Monopoly and Competition and their Regulation
- "The Monopoly Power of Labor", 1957, in Wright, editor, Impact of the Union
- "On the Origin of Oligopoly", 1957, EJ
- Towards a More General Theory of Value, 1957
- The Theory of Monopolistic Competition: A Reorientation of the Theory of Value, (Cambridge, MA: Harvard University Press, 1962