Curtin University Homepage
  • Library
  • Help
    • Admin

    espace - Curtin’s institutional repository

    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item

    Innovation, creative destruction, and price theory

    263587.pdf (253.2Kb)
    Access Status
    Open access
    Authors
    Bloch, Harry
    Metcalfe, S.
    Date
    2018
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Bloch, H. and Metcalfe, S. 2018. Innovation, creative destruction, and price theory. Industrial and Corporate Change. 27 (1): pp. 1-13.
    Source Title
    Industrial and Corporate Change
    DOI
    10.1093/icc/dtx020
    ISSN
    0960-6491
    School
    School of Economics and Finance
    URI
    http://hdl.handle.net/20.500.11937/65549
    Collection
    • Curtin Research Publications
    Abstract

    Our purpose in this paper is to consider developments in price theory required to facilitate the evolutionary analysis of economic change. Evolution is always a matter of change and, although its driving force is innovation, the price mechanism is central to how innovations are resolved into economic development. That is Schumpeter's great theme, but he said relatively little about who sets prices or how and why prices are changed. We focus particularly on price determination in markets disrupted by innovations, where firms are necessarily heterogeneous. We contrast the evolutionary paths followed by prices and market structure when prices are determined by market clearing to the paths when prices are determined through the application by firms of administered rules and routines to achieve their strategic objectives. This links the analysis to theories of administered prices and post- Keynesian price theories more broadly. Interaction of innovators with their customers and with established competitors create the context for the evolution of pricing rules along with differential firm growth, which together generates structural change in the industry and the economy. We show that analyzing how the introduction and diffusion of innovations impact on the rules and routines provides the foundation for a broadly applicable evolutionary price theory.

    Related items

    Showing items related by title, author, creator and subject.

    • An analysis of Australian mutual fund performance and market relationships
      Pojanavatee, Sasipa (2013)
      Mutual funds are emerging as an opportunity for investors to automatically diversify their investments in such a way that all their money is pooled and the investment decisions are left to a professional manager. There ...
    • Customer Choices of Manufacturer Versus Retailer Brands in Alternative Price and Usage Context
      Woodside, Arch; Ozcan, T. (2009)
      This article offers a context-dependent theory of how price changes influence consumer purchase choice for fast moving consumer goods (FMCGs) for manufacturer (large household share) and retailer (small household share) ...
    • Organizational change for school development: a study of implementation of school-based decision-making groups
      Dellar, Graham Brendon (1990)
      This study analyses, interprets and describes the dynamics of the change process occurring as members of three secondary school communities attempted to implement a Ministry of Education initiative involving the establishment ...
    Advanced search

    Browse

    Communities & CollectionsIssue DateAuthorTitleSubjectDocument TypeThis CollectionIssue DateAuthorTitleSubjectDocument Type

    My Account

    Admin

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Follow Curtin

    • 
    • 
    • 
    • 
    • 

    CRICOS Provider Code: 00301JABN: 99 143 842 569TEQSA: PRV12158

    Copyright | Disclaimer | Privacy statement | Accessibility

    Curtin would like to pay respect to the Aboriginal and Torres Strait Islander members of our community by acknowledging the traditional owners of the land on which the Perth campus is located, the Whadjuk people of the Nyungar Nation; and on our Kalgoorlie campus, the Wongutha people of the North-Eastern Goldfields.