AN ECONOMIC INTERPRETATION OF NEOCLASSICAL MONOPOLY THEORY IN THE LIGHT OF AUSTRIAN SCHOOL

The paper summarizes the contributions of the neoclassical and Austrian school ofthought in the field of monopoly theory arguing that the first uses non-operational concepts indescribing the entrepreneur‘s actions on the market. The Austrian economic theory of freecompetition is the opposite of perfect and pure competition which is the model used in most ofpolicy recommendations and also the intellectual legacy of neoclassicism. After proving that themonopoly price can‘t be scientifically determined and neither the consumer loss of welfare, thepaper raises the issue whether public policy should intervene in a case of monopoly.