Recent Price Legislation and Economic Theory

Abstract

EDITOR's NOTE: Legislation afecting marketing has been parture from generally accepted pracundertaken so freely that we do not always realize comrntices which would appear to be fraught pletely its effect. The present article calls sharply to attention some of the inconsistencies between recent legislation with momentous consequences to our and accepted or conventional economic theory. form of economy. Our mass of people Professor Bader's article raises some points which are has been going along, at least until very admittedly controversial. It may perhaps be questioned, for example, whether perfect competition is always a valid recently, in the belief that we live in a criteria against which to evaluate the phenomena of imcapitalist economy operating under conperfect competition. This procedure may over-simplify the ditions of perfect competition,2 and that, problem and when it is used, the interpretation must be carefully drawn. Or again, it is not certain that the owners as a result, the largest possible quantities of large enterprises always got there even in part by reof goods are produced; that they are stricting competition. Moreover, there might be some sense sold at reasonably low prices; and that to price legislation even if it did not raise prices or at least if it raised only the occasional extremely cut price. In any those who participate in producing and case, this is a thought-provoking article. marketing them receive a compensation