STIGLER’S INFLUENTIAL CONTRIBUTION TO ECONOMIC THOUGHT

Journal of Indonesian Economy and Business. 2017;32(1):70-80 DOI 10.22146/jieb.22981

 

Journal Homepage

Journal Title: Journal of Indonesian Economy and Business

ISSN: 2085-8272 (Print); 2338-5847 (Online)

Publisher: Universitas Gadjah Mada

Society/Institution: Universitas Gadjah Mada, Faculty of Economics and Business

LCC Subject Category: Social Sciences: Commerce: Business | Social Sciences: Economic theory. Demography: Economics as a science

Country of publisher: Indonesia

Language of fulltext: English

Full-text formats available: PDF

 

AUTHORS

Artidiatun Adji (faculty Economics and Business, Universitas Gadjah Mada)

EDITORIAL INFORMATION

Double blind peer review

Editorial Board

Instructions for authors

Time From Submission to Publication: 21 weeks

 

Abstract | Full Text

This paper analyzes George J. Stigler’s influential contributions to economic ideas, specifically on industrial structures, the functioning of markets, the causes and effects of public regulation, the economics of information, and on the development of economic thought. Stigler’s most influential contribution to economic thought came in his work on information theory. Treating information as a valuable commodity, he explained why prices differ for identical goods. From his work, many other theories have been built to explain economic behavior. A considerable number of works on decision making under uncertainty could not have progressed without an understanding of the role of information. His swing of the pendulum in economic regulation constitutes a great turnabout. He started research, known as public choice, which assumes that government policymakers are driven by self-interest rather than pure concern for the public’s welfare. His views have now become those of the mainstream.