Since 2014
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
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| Creator |
Csorba, L.
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| Description |
Scarcity is a basic concept in modern economics. This article briefly describes the changes that the various theoretical schools have made during the past 250 years in this concept until the emergence of its current notion. Formerly, scarcity was defined on the basis of production. Later, this notion was completed with an increasingly dominant definition on the basis of consumption. This dominance is currently seen gradually weakening. By now the equilibrium price, based on the general equilibrium theory of Walras, has become the benchmark and best definition of scarcity. Actually, it includes the scarcity notion of both production and consumption, although the level and impact of the two cannot be clearly distinguished. It means that prices and the underlying market mechanisms alone cannot – even under the best conditions (e.g. in case of perfect competition) – prevent the stock of certain resources from dropping below a critical level that may substantially hinder the successful achievement of the future goals of economic players or society as a whole. Apart from market mechanisms, there is a need for the proper operation of other – such as ethical or bureaucratic – coordination mechanisms to enable economic players to timely adjust to, or to avoid altogether, the emergence of bottlenecks.
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| Publisher |
GSTF Journal on Business Review (GBR)
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| Date |
2017-12-08
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://dl6.globalstf.org/index.php/gbr/article/view/655
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| Source |
GSTF Journal on Business Review (GBR); Vol 2 No 2 (2012): Journal on Business Review (GBR)
2251-2888 2251-2888 |
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| Language |
eng
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| Relation |
http://dl6.globalstf.org/index.php/gbr/article/view/655/600
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| Rights |
Copyright (c) 2017 GSTF Journal on Business Review (GBR)
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