A Fundamental Reformation of Neoclassical Economics

45 Pages Posted: 15 Jun 2020

See all articles by Dimitrios Nomidis

Dimitrios Nomidis

Athens University of Economics and Business; National Technical University of Athens

Date Written: June 9, 2020


During the second half of the twentieth-century economic theory moved increasingly away from price theory, which was gradually displaced by more modern trends such as game theory, behavioral-empirical-experimental economics, neuroeconomics, heterodox economics, etc. This was due to serious shortcomings and mistakes of the traditional theory that is based on Neoclassical economics. The correction of those mistakes entails dramatic changes in the Neoclassical theory and its fundamental outcomes, concerning perfect competition, price determination, value theory, income distribution, social welfare, and other major fields of economics. This also results in an integrated theory in which market functions, regardless of the number of firms, i.e. from monopoly to perfect competition. Moreover, by this reformation, traditional price theory regains its self-efficiency, prestige, and dominant position in economics.

Keywords: individual demand curves for the firms, price determination, equilibrium at firm and at market level, aggregate industry profit maximization, monopolistic nature of perfect competition, social welfare, revision of the mainstream theory

JEL Classification: B12, B13, B21, D21, D41, D42, D43, D46, D50, D60, E10, E13, E30

Suggested Citation

Nomidis, Dimitrios, A Fundamental Reformation of Neoclassical Economics (June 9, 2020). Available at SSRN: https://ssrn.com/abstract=3623004 or http://dx.doi.org/10.2139/ssrn.3623004

Dimitrios Nomidis (Contact Author)

Athens University of Economics and Business ( email )

76 Patission Street
Athens, 104 34

National Technical University of Athens ( email )

Zografou Campus

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