We cannot verify your location
Browse Book and Journal Content on Project MUSE

Market Theory and the Price System

Israel Kirzner

Publication Year: 2012

Published by: Liberty Fund

Title Page, Copyright

pdf iconDownload PDF (542.8 KB)
pp. 2-7


pdf iconDownload PDF (534.2 KB)
pp. vii-viii

read more

Introduction to the Liberty Fund Edition

pdf iconDownload PDF (545.2 KB)
pp. ix-xv

Market Theory and the Price System was published in 1963 as Professor Israel M. Kirzner’s first (and only) textbook. It was also his second book publication after that of The Economic Point of View, three years earlier. Market Theory and the Price System tackles the common subject...

read more


pdf iconDownload PDF (525.8 KB)
pp. xvii-xviii

During the past few years a number of competently written textbooks on price theory have appeared. The author’s excuse for adding yet another book to the elementary literature in this field is that his approach, while in no sense original, presents the subject in an entirely different...

read more

1. The Nature and Tasks of Market Theory

pdf iconDownload PDF (566.2 KB)
pp. 1-13

This book is devoted to the study of the theory of the market system. In this first chapter we attempt to obtain a clear notion of what is meant by a market; what is meant by a market system; and how economic theory can throw light on the nature of market processes. Our discussion...

read more

2. The Market: Its Structure and Operation

pdf iconDownload PDF (618.5 KB)
pp. 14-34

In this chapter and in the next, we survey the market, its overall operations and achievements. Later we will analyze, separately, the different functional sectors that compose the market, and how these various sectors interact within the market. Here, we will contemplate the forest...

read more

3. Efficiency, Coordination,and the Market Economy

pdf iconDownload PDF (568.9 KB)
pp. 35-47

In this chapter we complete our broad preliminary survey of the theory of the market system, its operation and achievements. Chapter 2 attempted to provide a bird’s-eye view of the way the market transmits economic forces through the system, tending to make the actions of all...

read more

4. Utility Theory

pdf iconDownload PDF (596.2 KB)
pp. 48-67

In this and the succeeding chapters we discuss the theory of the demand side of the market. Our task will be to explain the way the alternatives presented to each consumer by the market determine the way he spends his income and the quantities of each good that he decides to...

read more

5. Consumer Income Allocation

pdf iconDownload PDF (735.3 KB)
pp. 68-91

We have developed thus far the tool of marginal utility. We must now put this tool to use in analyzing the pattern of consumer behavior in spending his income in the marketplace on the goods and services he desires. Such an analysis (a) will enable us to understand the forces of...

read more

6. Market Demand

pdf iconDownload PDF (712.5 KB)
pp. 92-112

In this chapter we will carry forward the analysis of consumer demand from the individual to the market. Each individual, we found, attempts to allocate his consumption expenditures among various available goods according to fairly well-defined principles. There will therefore...

read more

7. Market Process in a Pure Exchange Economy

pdf iconDownload PDF (776.9 KB)
pp. 113-152

Until now we have been concerned with the way consumers make decisions when faced with the necessity of choosing between alternatives given by the market. We assumed consumers were faced with an array of products that could be bought at given prices. We investigated the...

read more

8. Production Theory

pdf iconDownload PDF (1002.4 KB)
pp. 153-196

Thus far, our analysis of individual economic activity and of the interaction in the market of the economic activity of numerous individuals has been confined to a world where no production was considered possible. The market process we were able to analyze was a process where all...

read more

9. Costs and Supply

pdf iconDownload PDF (723.0 KB)
pp. 197-226

An understanding of the operation of the full market process must include, we have seen, the understanding of the forces acting to supply the market with the various produced goods and services. These forces determine the arrays of alternatives offered to prospective consumers. But we...

read more

10. Partial Market Processes—The Determination of Product Prices and Factor Prices

pdf iconDownload PDF (674.8 KB)
pp. 227-254

We return now to consider the market process. In Chapter 7 we considered the kind of market process that would emerge in the absence of production. We assumed a society naturally endowed with a daily income of consumption goods of various kinds, and we then followed...

read more

11. The General Market Process

pdf iconDownload PDF (617.5 KB)
pp. 255-285

In the present chapter we seek to understand how the competitive market process works in a system where no prices are considered as “given” or constant. In such a system the prices of all factors, and of all products, are variables that take on values determined by the market...

read more

12. Monopoly and Competition in the General Market

pdf iconDownload PDF (747.5 KB)
pp. 286-320

We have been examining until now market processes where the relevant market forces operated principally through competitive pressures. We saw how the price that each resource owner obtains for the resources he sells (or the price that each producer obtains for the...

read more

13. The Price System and the Allocation of Resources

pdf iconDownload PDF (573.0 KB)
pp. 321-334

Most of this book has been concerned, “positively,” with the operation and mechanics of a free enterprise system and the market process. We have discussed the process by which the market determines (a) the prices and quantities produced of each possible product, (b) the prices...

read more

Appendix: The Application of Market Theory to Multi-Period Planning

pdf iconDownload PDF (558.5 KB)
pp. 335-345

This book has outlined the process by which decisions of individual market participants interact and are brought into mutual coordination. Through the price system, the owners of resources are attracted to sell their respective resources to entrepreneurs whose production plans...


pdf iconDownload PDF (544.4 KB)
pp. 347-352

E-ISBN-13: 9781614878957
E-ISBN-10: 1614878951
Print-ISBN-13: 9780865977600

Page Count: 372
Publication Year: 2012