Development of Economic Thought Assignment Example | Topics and Well Written Essays - 750 words

Development of Economic Thought - Assignment Example They came up with the theory of imperfect competition revolution. They were having the socialist opinion and support the equal right mandate to be chosen. In other words, Robinson and Chamberlin tried to modify the price theory. They were having the opinion that the ideal competitive process leads to the reduction in the welfare of the state whereas imperfect competition results in the welfare of the state. By introducing imperfect competition, the variety of products increases. This results in providing people with a range of accessories. This new price approach, therefore, brings about change not only in the terms of the welfare of society but also in the approach of people(Bellante). People start paying for the wider range of products, thus resulting in the greater amount of revenues generated. Although this approach is being effectively implemented in the socialist economies of today, in the past when this approach was first introduced, it faced the number of challenges. According to Robinson and Chamberlin, this approach is not only the means of generating more revenue but also provides added benefits of more employment opportunit ies. But Lange was having the opinion that although this approach is good from the perspective of person individually, but not from the perspective of nation-building. This theory produces rapid changes in the socio-economic world and hence rapid changes thus take place in the demand of products. Therefore, job security is really reduced. Dobb was basically a 20th-century economist following Marxian political theories. Dobbin his famous book â€Å"the Development of Socialist Economic Thought† have discussed that according to the Marxist’s school of thought socialism is divided into two stages; categorized as a lower socialism stage and a higher socialism stage. The people or class belonging to lower socialism stage is those who solely depend on their income and this income comes as a part of their salary. They do not have any other  source of income. But the other stage of higher socialism results in the unequal distribution of resources(Cockshott).