Scaling Heuristics Shape Technology! Should Economic Theory Take Notice?
Posted: 30 Jun 2008
Date Written: June 2008
In some economics textbooks production theory is developed axiomatically. The divisibility axiom presents a bold affront to realism. It distorts the static theory and forecloses some potential encounters with technological change. The article reviews propositions about geometrical scaling that have long been recognized as relevant to the realities studied in many fields, including industrial organization economics. The article concludes by sketching a program of reform for production theory that would make connections to Dosi's concepts of technological paradigms and trajectories (Dosi, ).
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