MHR 522 Lecture Notes - Perfect Competition, Institutional Economics, Wing
11 Feb 2014
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What is a theory: concept that gives a different view based on different perspectives. Attempts to explain something that is not obvious. Something that needs explanation : if something is absolutely accepted as a fact, it is no longer a theory. Paradigm: a mindset, a way of being/acting/thinking, a school of thought, values/beliefs, an accumulation of ideas that guides the way we see/view/think about something. Perspectives from people working in industrial relations: there are five perspectives, neoliberal (the neoclassical economic perspective) [right wing] A philosophy and a state of a society: managerialist. Tuesday, january 21, 2014: orthodox/pluralist (institutionalist perspective) Based on people writing in an institutionalist perspective: liberal/reformist, radical [left wing] Price = wage: equilibrium = the wage rate and the quantity demanded is equal = efficient (maximum output) If there is one firm that is paying under the equilibrium wage rate, what will happen: competitors will outbid for that worker; workers will go to the other companies to work.
