This is main page to store all relevant links and materials about S&D:
Supply and Demand Models are deeply flawed. Demonstrating their failure and providing alternatives would be an extremely useful way to lead out of the morass created by conventional economic theory
First I list some of my own papers and lectures about the failure of supply and demand theories. After this, further references to the by-now vast literature on this topic is available from the links given below
Varian Chapter 1: (Setting up the Supply and Demand Model) WEA Commentaries.
Advanced Microeconomics Lecture 9: Real S&D Models, contrasted with Econ Theory.
Advanced Microeconomics Lecture 8: Failure of S&D in Labor Market.
Adv MIcro Lecture 11: Theory of Value (not determined by S&D, but by social norms)
Advanced Microeconomics Lecture 12: Realistic S&D Models
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Lee&Irving Lessman: Errant Hypothesis was normal cost pricing theory of firms, presented as an alternative to Marginal Cost Pricing. How this theory was disruptive of fundamental & key structural assumptions and therefore it was treated by three strategies used to treat anomalies: [I] by re-interpreting results, we can assimilate the anomaly. [II] Conventional theory may be extended to handle the anomaly, thereby strengthening itself. {III} Aspersions can be cast on motives of introducers of new theory, thereby discrediting and making it unnecessary to consider it or respond to it.
Lee 1984 Studies the Controversey of Full Cost Pricing and again how this challenge to marginalist story was normalized and absorbed into mainstream economics.
Downward & Lee 2001 review a study which "Asks about prices" . The study asks managers how they set prices, and uses it to settle controversey between twelve different theories which explain sticky prices that are widely observed. Basically it rejects neoclassical theories of prices and is generally in conformity with Post Keynesian thought about price setting behaviors.
See LINK for The Incoherent Emperor: A Heterodox Critique of Neoclassical Microeconomic Theory Frederic S. Lee and Steve Keen REVIEW OF SOCIAL ECONOMY, VOL. LXII, NO. 2, JUNE 2004
Sraffa - A competitive industry cannot exist with either increasing or decreasing returns to scale. Constant returns to scale leaves firm and industry size indeterminate.
Industry to Firm or Vice Versa: Two different traditions of Industry Supply - Arrigo Opocher & Ian Steedman (2008) The industry supply curve: Two different traditions, The European Journal of the History of Economic Thought,
Conflict between GE and PE D&S - Zaman=Saglam paper on failure of Demand Supply models