Condorcet’s Principle (1785)

Named after French mathematician and philosopher MARIE ANTOINE CONDORCET (1743-1794), Condorcet’s principle deals with the complexity of voting and choices, by which the final choice is made by rejection of all other alternatives in a series of paired contests. Condorcet’s jury theorem is a political science theorem about the relative probability of a given group of individuals

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Consumer surplus (19TH-20TH CENTURY)

Identified by French engineer and economist Jules Dupuit (1804-1866) and later developed by English economist Alfred Marshall (1842-1924), consumer surplus theory assumes that the price paid by consumers for a good never exceeds and seldom equals the amount they are willing to pay rather than forgo the good. In mainstream economics, economic surplus, also known as total welfare

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Contestable markets theory (1982)

Developed by American economist William Baumol (1922-), contestable markets theory defines contestability as the effectiveness of barriers to entry and exit in a market. Perfect competition, with complete freedom of movement, is perfectly contestable. In economics, the theory of contestable markets, associated primarily with its 1982 proponent William J. Baumol, holds that there are

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Contingency Theory

A contingency theory is a theory of the firm that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation. Contingent leaders are flexible in choosing and adapting to succinct strategies

Continuity thesis

An assertion that a continuum exists between the classical and neoclassical schools of economy which was not disrupted by the rise of the Marginalist movement of the 1870s. Continuity thesis maintains that English economist Alfred Marshall (1842-1924) did not overturn classical economics but simply used sharper mathematical tools to refine Ricardian economics. In the history of

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Contract theory

Contract theory is the study of the manner in which labor and capital agree the parameters of production, and the amount of risk and rewards each side will bear. In economics, contract theory studies how economic actors can and do construct contractual arrangements, generally in the presence of asymmetric information. Because of its connections

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Convergence theory (1960S)

Theory of development of industrial nations, first proposed by Dutch economist JAN TINBERGEN (1903-1994). The division between capitalist democracies in Western Europe and North America, and communist states in Eastern Europe, is fading. The nature of industrial society leads both types to converge towards a common centre. Capitalist societies are becoming more organized and

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Co-operative games theory (1940S)

A branch of game theory dealing with co-operative rather than simply competitive players. Game theory attempts to study the interaction of individual decisions (given specific assumptions about decisions made under risk), the general environment and individual behavior patterns. Co-operative games theory is used in the analysis of cartels and other forms of market collusion.

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Corporatism

Corporatism is a political ideology which advocates the organization of society by corporate groups, such as agricultural, labour, military, scientific, or guild associations on the basis of their common interests. The term is derived from the Latin corpus, or “human body”. The hypothesis that society will reach a peak of harmonious functioning when each

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Cost benefit analysis (19TH CENTURY- )

First examined by French engineer and economist Jules Dupuit (1804-1866) and later developed by 20th century economists, cost benefit analysis is the determination of the total value of a proposed investment’s inputs and outputs. Cost benefit analysis examines opportunity costs, externalities, shadow prices and estimates of future interest rates. The technique was first used in the assessment

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Cost push inflation (1950S)

Examined by American and European economists in response to high inflation levels, cost push inflation refers to a rise in prices triggered by an increase in the costs of production (such as wages or commodity prices) in the absence of an increase in demand.After the large price increases in the period between World War

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Countervailing power (1952- )

Countervailing power is the theory of political modification of markets, formulated by American economist JOHN KENNETH GALBRAITH (1908- ). In the classic liberal economy, goods and services are provided and prices set by free bargaining. Modern economies give massive powers to large business corporations to bias this process, and there arise ‘countervailing’ powers in

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Cournot duopoly model (1838)

Named after French economist Antoine Augustin Cournot (1801-1877), Cournot duopoly model shows two firms that react to one another’s output changes until they eventually reach a position from which neither would wish to depart. Both firms eventually expand to such a degree that they have equal shares in the market and secure only normal profits. Cournot

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Cramer’s Rule

In linear algebra, Cramer’s rule is an explicit formula for the solution of a system of linear equations with as many equations as unknowns, valid whenever the system has a unique solution. It expresses the solution in terms of the determinants of the (square) coefficient matrix and of matrices obtained from it by replacing

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Crisis of capitalism (19TH CENTURY- )

Prediction in Marxism of the collapse of capitalism. A species of catastrophe theory, envisaging that the inherent contradictions of the capitalist system will lead, through political conflict, to the collapse or overthrow of capitalism. Varieties of capitalism It is an ongoing debate within the fields of economics and sociology as to what the past, current and future

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Altruism (1850-1855)

Also called (William Donald) Hamilton’s genetical theory of social behavior, altruism is any behavior of an animal that may be disadvantageous for the individual, but that benefits others of its species. The theory was espoused (as the ‘law of mutual aid‘) by Prince Peter Kropotkin (1842-1921), a Russian philosopher; but the term was coined by Auguste Comte (1798-1857),

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Emile Durkheim (1858-1917)

Emile D. Durkheim was born on the evening of April 15, 1858 at Epinal in Lorraine. His mother, Melanie, was a merchant’s daughter and his father was the Rabbi of Epinal and was also Chief Rabbi of the Vosges and Haute-Marne. Emile spent part of his early school years in a rabbinical school destined

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Androcentrism (20TH CENTURY)

Theory attributed by feminists to male scholarship. Androcentrism, or male centeredness, is attributed to rather than claimed by theories and thinkers. Androcentrism takes male values or practices as the norm, and then explains female values or practices as deviations from, or unsuccessful aspirations towards, male ways of doing things. Origin of the term The

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Anomie (19TH CENTURY- )

Characteristic of modern society described by French sociologist Emile Durkheim (1858-1917). In modern societies, an absence of effective moral or cultural rules and restraints to individual wills leads to both social and individual breakdown, since frameworks are necessary for stable social life. History In 1893, Durkheim introduced the concept of anomie to describe the mismatch of collective guild labour to

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Apartheid (20TH CENTURY)

South African/Afrikaans theory of legally enforced racial separation. Apartheid rested on the argument that racial distinctions were fundamental to the character of human societies, and that they were biologically based. Human beings should thus be categorized by race, and this categorization should be legally enforced in social, economic, and political affairs. Races should not

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