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Issues related to the conceptual changes and perception difficulties of scarcity

GSTF Journal on Business Review

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Title Issues related to the conceptual changes and perception difficulties of scarcity
 
Creator Csorba, L.
 
Subject coordination Mechanism, General Equilibrium, Macroeconomics, Prices, Scarcity, Uncertainty
 
Description Scarcity is a basic concept in modern economics. Thisarticle briefly describes the changes that the various theoreticalschools have made during the past 250 years in this conceptuntil the emergence of its current notion. Formerly, scarcity wasdefined on the basis of production. Later, this notion wascompleted with an increasingly dominant definition on the basisof consumption. This dominance is currently seen graduallyweakening. By now the equilibrium price, based on the generalequilibrium theory of Walras, has become the benchmark andbest definition of scarcity. Actually, it includes the scarcitynotion of both production and consumption, although the leveland impact of the two cannot be clearly distinguished. It meansthat prices and the underlying market mechanisms alone cannot– even under the best conditions (e.g. in case of perfectcompetition) – prevent the stock of certain resources fromdropping below a critical level that may substantially hinder thesuccessful achievement of the future goals of economic playersor society as a whole. Apart from market mechanisms, there is aneed for the proper operation of other – such as ethical orbureaucratic – coordination mechanisms to enable economicplayers to timely adjust to, or to avoid altogether, the emergenceof bottlenecks.
 
Publisher GSTF Journal on Business Review (GBR)
 
Contributor —
 
Date 2012-10-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://dl6.globalstf.org/index.php/gbr/article/view/1237
 
Source GSTF Journal on Business Review (GBR); Vol 2, No 2 (2012): Journal on Business Review (GBR)
ISSN: 2251-2888
2010-4804
 
Language eng
 
Relation http://dl6.globalstf.org/index.php/gbr/article/view/1237/1253
 
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