Previous Chapter Chapter 3: Antecedents and Affinities: Heterogeneous Demand and Differential Advantage Next Chapter

In: A General Theory of Competition: Resources, Competences, Productivity, Economic Growth

Chapter 3: Antecedents and Affinities: Heterogeneous Demand and Differential Advantage

  • Citations
  • Add to My List
  • Text Size

Antecedents and Affinities: Heterogeneous Demand and Differential Advantage
Antecedents and affinities: Heterogeneous demand and differential advantage

This chapter continues the process of reviewing the theories, research programs, and traditions that resource-advantage theory either draws on or shares affinities with. In particular, this chapter discusses heterogeneous demand theory and differential advantage theory. Again, I review only those portions of each theory relevant to R-A theory and point readers toward more comprehensive reviews.

Heterogeneous Demand Theory

The neoclassical tradition assumes both homogeneous, intra-industry demand and homogeneous, intra-industry supply. That is, neoclassical theory focuses on, strictly speaking, the demand for and production of commodities. As Stigler (1957) puts it: “The formal condition [in perfect competition] that there be many producers of a commodity assumes homogeneity of this commodity” (p. 13; italics ...

Looks like you do not have access to this content.

Login

Don’t know how to login?

Click here for free trial login.

Back to Top

Copy and paste the following HTML into your website